Rivian shares hit new low after 2021 production cuts

A Rivian R1T electric pickup truck during the company’s IPO outside Nasdaq MarketSite in New York, on Wednesday, November 10, 2021.

Bing Guan | Bloomberg | beautiful pictures

Shares of Rivian Automotive, an electric vehicle startup that went public through a blockbuster IPO last month, hit a new low Friday morning after the company slashed its 2021 vehicle production target.

Rivian said after the market close on Thursday that it is expected to fall “short a few hundred cars” of this year’s production target is 1,200 vehicles. The company says it faces supply chain issues as well as challenges in ramping up production of the complex batteries that power vehicles.

“Building a production system like this, as I said before, is a really complicated orchestration,” Rivian CEO RJ Scaringe told investors. “We’re growing largely as expected, the battery constraint is really a work of augmenting a highly automated line and like I said, it doesn’t present any long-term challenges. for us.”

Shares of Rivian in Friday morning trading fell 15% to less than $93 per share — a new low for the company’s stock since it began trading on Nov. The company’s shares first opened below $100/share.

In addition to production difficulties, Rivian said total pre-orders for its electric R1T pickup truck and R1S SUV had grown to 71,000 units as of December 15, a 28% increase from the tally. most recently 55,400 vehicles in November. That’s a higher percentage than what the company expected, officials said.

The updates come alongside Rivian’s first quarterly report as a public company and confirmation of plans for a new $5 billion plant in Georgia, expected to come into operation in 2024.

Rivian’s Q3 results fell in line with Wall Street’s revenue expectations and with estimates the company previously released. as part of its recent IPO.

For the third quarter, Rivian reported an operating loss of $776 million and a net loss of $1.23 billion. The company had previously predicted an operating loss of $745 million to $795 million and a net loss of $1.21 billion to $1.28 billion. Rivian shares hit new low after 2021 production cuts

Sarah Ridley

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