EV maker Rivian beats expectations for deliveries as provide snag eases

By Jaspreet Singh

(Reuters) -Rivian surpassed analysts’ expectations for fourth-quarter deliveries on Friday and stated its manufacturing was not constrained by a part scarcity, a constructive signal for the electrical automobile maker aiming to show its first revenue.

Shares of the California-based firm rose practically 19%. The inventory misplaced greater than 40% of its worth in 2024.

The scarcity of the half utilized in its R1 SUV and R1T pickups, in addition to its supply vans, began within the third quarter and compelled Rivian (NASDAQ:RIVN) to slash its annual manufacturing goal in October.

“The beforehand mentioned scarcity of a shared part on the R1 and RCV platforms is not a constraint on Rivian’s manufacturing,” the corporate stated on Friday.

Rivian handed over 14,183 automobiles within the three months ended Dec. 31, in contrast with estimates of 13,472, in response to 15 analysts polled by Seen Alpha.

That was a 42% bounce from the earlier quarter and marked Rivian’s highest deliveries in additional than a 12 months, although Amazon.com (NASDAQ:AMZN), its largest backer, takes fewer deliveries within the fourth quarter as a result of its concentrate on vacation season gross sales.

Rivian produced 12,727 automobiles within the quarter, in contrast with estimates of 11,398 models.

For 2024, manufacturing got here in at 49,476 automobiles, down about 13% from a 12 months earlier however above the corporate’s lowered goal of between 47,000 and 49,000 models.

“Improved manufacturing, coupled with its centered product technique, places Rivian on a aggressive footing throughout a time when Tesla (NASDAQ:TSLA) may profit from refreshing its client attraction to counter present market circumstances,” stated eMarketer analyst Jacob Bourne.

Tesla reported its first fall in yearly deliveries on Thursday, additionally weighed down by the EV pioneer’s getting older lineup.

Rivian has minimize prices sharply by renegotiating provider contracts and revamping its manufacturing processes to show a gross revenue for the fourth quarter. It additionally closed a $5.8 billion funding from German automaker Volkswagen (ETR:VOWG_p) as a part of their expertise three way partnership.

EV makers are grappling with slowing demand as increased borrowing prices push consumers towards cheaper gasoline-powered hybrid automobiles and legacy automakers concentrate on rolling out electrical automobiles.

Rivian stated it will report its fourth-quarter outcomes on Feb. 20 after markets shut.