Rivian Automotive topped its own 2023 vehicle production forecast, but the electric-vehicle maker fell slightly short of Wall Street predictions for deliveries, according to data released by the company Tuesday. Rivian stock dropped on the day.
The company said it produced 17,541 units and delivered 13,972 vehicles in the fourth quarter. Analysts had predicted fourth-quarter vehicle deliveries growing 75% to 14,000.
The Irvine, Calif.-based company also announced that for the full year it produced 57,232 vehicles and delivered 50,122. While Rivian exceeded its own 2023 production forecast at 54,000 vehicles, Wall Street called for full-year deliveries surging 155% to 51,000 units.
Rivian stock plunged 10% to 21.10 Tuesday during market action. On Friday, RIVN edged down 0.3% to 23.46. This comes after Rivian stock advanced 40% in December as Baird designated RIVN stock as a "best idea" for 2024.
The brokerage wrote on Dec. 28 that Rivian has remained supply constrained relative to demand longer than several of its EV peers and Baird expects this to continue. But Baird sees Rivian as well positioned for a strong 2024, and gives RIVN stock an "outperform" rating with a price target of 30.
How Rivian Stock Made A Big Move
Rivian shares surged nearly 8% on Dec. 1, the day after Tesla delivered its first Cybertrucks, as the move helped boost investor interest in EV trucks.
Shares then took off later in the month when news broke that Ford halved its F-150 Lightning production forecast, citing "changing market demand" according to a company memo obtained by Automotive News. The automaker now expects to manufacture 1,600 of the EV pickups per week at its Rogue Electric Vehicle Center in Dearborn, Mich.
Then on Dec. 14, AT&T announced that starting in 2024 it will begin "piloting" Rivian vehicles in its fleet. AT&T expects to begin adding the Rivian Commercial Van and R1 vehicles to its fleet in early 2024. It is unclear how many Rivian vehicles AT&T will order. The company partnership also means AT&T is the exclusive provider of connectivity to all Rivian vehicles, in the U.S. and Canada.
Meanwhile, Rivian had announced during its third-quarter earnings it would allow more customers beyond Amazon, which remains a key buyer, to purchase its commercial electric vans.
Rivian surprised Wall Street in November when it reported better-than-expected third-quarter revenue and raised its EV production guidance for the full year. The EV startup produced 16,304 vehicles and delivered 15,564 vehicles in the third quarter. Meanwhile, Rivian booked a loss of $30,648 per vehicle delivered in the third quarter, down from a loss of $139,277 per unit delivered a year ago.
Rivian lost $1.19 a share during that period, less than feared, while revenue jumped 149% $1.34 billion, slightly above views. That marked the fifth-straight quarter of smaller year-over-year losses, according to FactSet.
Rivian Gains For 2023
For all of 2023, RIVN stock gained 27%. However, the stock is currently trading about 70% below 78, its initial public offering price in November 2021.
Rivian stock now trades above its 50-day and 200-day moving averages, according to MarketSmith analysis. Shares now are down about 16% from 2023 highs. MarketSmith shows an official buy point of 28.06.
Rivian stock tumbled 9% on Oct. 10, 2022, after the startup recalled nearly all of its 13,000 vehicles on the road to fix a steering defect. Loosened fasteners could cause the steering controls to fail.
Rivian stock ranks sixth in IBD's Automakers industry group. RIVN has a 64 Composite Rating out of 99. Additionally, the stock has an 87 Relative Strength Rating and its EPS Rating is 42 out of 99.
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