Rivian (RIVN) Q4 2021 Revenues

Rivian signaling at Nasdaq on the day of their IPO, November 10, 2021 in New York.

Source: Rivian

Shares of Rivian Automotive fell in after-hours trading Thursday after the company missed Wall Street’s fourth-quarter earnings expectations and forecast a modest increase in vehicle production for 2022.

Shares of the electric vehicle automaker fell more than 13%, after hitting a new 52-week low on Thursday.

Rivian said it plans to produce 25,000 electric trucks and SUVs this year as the startup battles supply chain constraints and internal production issues. That would be only half of the vehicle production it predicted for investors last year as part of its IPO round.

“In the immediate term, we are not immune to supply chain issues that have challenged the entire industry. These issues, which we believe will continue at least through 2022 , have added a layer of complexity to our production ramp-up,” the company said in a letter to shareholders.

Rivian said reservations for its vehicles reached about 83,000 as of March 8, from 71,000 in December.

A projected increase in production will come with an adjusted operating loss of $4.75 billion and capital expenditures of $2.6 billion this year, the company said Thursday when releasing its earnings reports. fourth quarter results.

Here’s how Rivian fared in the quarter, compared to analyst estimates compiled by Refinitiv:

  • Adjusted loss per share: $2.43 vs. $1.97 per share expected
  • Income: $54 million vs $60 million expected

Rivian reported an adjusted operating loss of $2.8 billion for 2021, including $1.1 billion in the fourth quarter, marking significantly larger losses than a year ago. Its net loss for 2021 was $4.7 billion, including $2.5 billion in the last quarter.

The company did not offer revenue guidance for 2022, although Refintiv consensus estimates call for an adjusted loss per share of $4.97 and revenue of around $3.16 billion.

The company remains financially sound, however, with $18.4 billion in cash at the end of last year. Rivian said it expects capital spending to total about $8 billion by the end of 2023. The company had previously set a production target of 150,000 vehicles per year by that date.

Rivian CEO RJ Scaringe said Thursday that the company would be able to produce more than 50,000 units this year if there were no problems in the supply chain.

“We are working as hard as we can to ramp up suppliers,” he told investors.

Rivian is one of the leaders in early-stage electric vehicle start-ups. Late last year, the company began producing three separate vehicles at its plant in Normal, Illinois. Vehicles include an R1T pickup and an R1S SUV for consumers and an electric delivery van. The first orders for the vans go to Amazon, which owns 20% of the capital of the start-up.

The company declined to disclose how many vans it produced and delivered to Amazon.

During the earnings presentation, Scaringe also shared additional details about the new lower-cost, lower-range “Standard” batteries announced on March 1.

The new packs will contain lithium iron phosphate, or LFP, battery cells that don’t use nickel or cobalt – the price of which has skyrocketed in recent weeks. The new Standard batteries will debut later this year in RCV delivery vans the company is building for Amazon – but they won’t be available in R1T and R1S models until 2024, Scaringe said.

Shares of Rivian, which went public in November, are down about 60% this year as of Thursday’s close, after the company missed its 2021 production targets.