Rivian reported Tuesday it produced 17,541 vehicles at its Normal, Illinois factory and delivered 13,972 to customers in the fourth quarter, mixed results that left investors wary and sent shares down in pre-market trading.
Rivian shares sank 9.75% to $21.17 at 1:40 pm ET.
Rivian had shown consistent growth in production and deliveries in the first three quarters of the year. And while production numbers continued on that upward trajectory in the fourth quarter, deliveries dipped by 10.2% from the previous quarter. That drop could signal softening demand for the company’s slate of premium EVs. Rivian produces four vehicles: its two consumer vehicles, the R1T truck and R1S SUV, and two versions of its commercial van.
Slowing demand for high-priced EVs has plagued automakers, forcing many to scale back production or cut prices. Rivian has managed to avoid slashing prices. If deliveries continue to fall into 2024, the automaker may have to take that strategy in an effort to boost its numbers. That would spell trouble for Rivian, which is not yet profitable.
The cost of building one Rivian vehicle continues to be a barrier to the company’s path toward profitability. Rivian’s consumer R1T and R1S vehicles sell for more than $80,000, on average. But the cost of building far exceeds any revenue it brings. In the second quarter, for instance, the company lost $32,495 on every vehicle it built.
Rivian said during its third-quarter earnings that it narrowed that per unit loss by $2,000 compared to the second quarter by simplifying its product portfolio and reducing material and labor costs. Cutting the sticker price would only put more pressure on margins.
On a full-year basis, Rivian produced 57,232 vehicles and delivered 50,122. This exceeded the automaker’s most recent full-year 2023 production guidance of 54,000 vehicles.
The company also announced that it will report fourth-quarter earning after markets close February 21.
