Rivian has released its earnings report for the fourth quarter of 2022, and the numbers have left some investors disappointed. While the company reported a smaller-than-expected loss of $1.73, compared to the expected $1.94, its revenue for the quarter came in at $663 million, which was lighter than the expected $742 million.
The stock has fallen over 7% since the earnings call due to the lower-than-expected guidance for next year, with the company forecasting the production of 50,000 vehicles, 10,000 fewer than many analysts were expecting.
The company produced 10,020 and delivered 8,054 vehicles. Supply chain constraints remained the main challenge for the company’s production, with multiple days of lost production reported due to supplier shortages. Rivian expects supply chain challenges to persist into 2023, but with better predictability than in 2022.
Despite challenges in production and pricing pressures, Rivian aims to achieve a positive gross profit in 2024. As of the end of 2022, Rivian had approximately $12.1 billion in cash, which is down from $13.8 billion at the end of Q3 and $15.5 billion in June 2022. The company is focused on ramping up production of its R1 truck and SUV as well as an electric delivery van for Amazon, its largest shareholder.
Rivian will continue to take steps to ramp up production and reduce material costs by slimming down its engineering and vehicle design, along with commercial cost-down efforts. The company’s CEO, RJ Scaringe, announced that the R2 model will use a simplified assembly and sourcing process to achieve a lower cost structure.
