Bad news from Rivian. The startup just a few months ago most promising of the electric stars and stripes automotive, seduced and abandoned by Ford (which focuses on its F-150 Lightening pickup) and Amazon (investor who preferred a partnership with Stellantis), as well as by a wealthy Saudi investor could cut the already low production expected for 2022 by up to 50%. The negative effects of the long semiconductor crisis were not enough, which is so bad (10 million fewer units produced and 180 billion euros of lower revenues in 2021) made the global automotive industry. Now even the war in Ukraine has worsened the conditions in which manufacturers operate due to the delicate element of the supply chain of components, aka the supply chain.
The disappointment of the market
Meanwhile, the results of the aspiring manufacturer of the R1T pick-up and the R1S SUV. based in Irvine, California, they did not meet Wall Street expectations. Rivian posted quarterly revenue of $ 54 million ($ 55 million for the whole of 2021, as it did not produce vehicles until the second half of the year). Three analysts interviewed by Zacks Investment Research expected $ 50.4 million. So far, so good. And yet for the year the car-maker led by CEO RJ Scaringe, formerly Tesla, recorded a loss monster of 4.69 billion (2.46 of which in the fourth quarter, for starting production), equal to $ 22.98 per share. The average estimate of four analysts interviewed by Zacks was only $ 1.58 lost per share while the reality was $ 2.43 losses per share, adjusted for non-recurring costs. The consequence was a further heavy decline in the stock, which from the glories of the IPO at 100 dollars, up to a maximum of 172, today is sailing around 40 dollars and 36 billion in capitalization, collapsed to 12th place in the world ranking, after Stellantis and direct rival Lucid. Rivian has lost 70% of its value since its placement in November.
The expected production is halved
Rivian said it plans to build 25,000 vehicles in 2022, a figure that remains to be verified due to a shortage of components. Without obstacles, the Normal, Georgia factory would have capacity to build about 50,000 vehicles, Rivian wrote in a letter to shareholders Thursday as he reported quarterly results. “We are not immune to the supply chain problems that have affected the entire industry,” Rivian said in the letter. “These problems, which we believe will continue at least until the end of 2022, have added complexity to our production”. With the addition of the controversy of future customers, who have seen their price lists significantly increase. Hard times for those who want to enter the car market.