RIVN Stock: How a New Supply Chain Caused Rivian to Miss Production Estimates


  • Rivian (RIVN) produced 13,980 vehicles during Q1, missing the estimate for 14,250 vehicles by about 2%.
  • Its deliveries of 13,588 came ahead of the analyst estimate for 13,000 vehicles.
  • RIVN stock is down by about 50% this year.
RIVN stock - RIVN Stock: How a New Supply Chain Caused Rivian to Miss Production Estimates

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Shares of Rivian (NASDAQ:RIVN) stock are falling by over 5% today after the pure-play electric vehicle (EV) company announced its first-quarter production and deliveries.

During the quarter, Rivian produced 13,980 vehicles and delivered 13,588 of them. Production came below the Visible Alpha estimate of 14,250 vehicles by about 2%. On the bright side, analysts polled by FactSet were expecting 13,000 deliveries, meaning that Rivian beat the estimate by 4.5%. Rivian delivered 13,972 vehicles during Q4.

The company has guided for the production of 57,000 vehicles this year and noted that it is still on track to satisfy this. 2023 production tallied in at 57,232 vehicles.

2024 production would be 55,902 vehicles based on the Q1 run rate, meaning that production must ramp up later on in the year in order to meet the guidance. Rivian stated that its quarterly deliveries were in line as well.

RIVN Stock: How a New Supply Chain Caused Rivian to Miss Production Estimates

According to Reuters, the quarterly production miss was due to Rivian adjusting its suppliers within its supply chain in order to capitalize on reduced costs and increased efficiency. The move comes as demand for EVs has faltered in favor of hybrid vehicles due to high price tags. Reuters also added that Rivian may have understated its production:

“The company said that they have produced a few thousand additional vehicles which have not been included in this quarter’s figures as they await a part which they expect to receive in April.”

Furthermore, Rivian is planning on shutting down production for upgrades for a few weeks during Q2. Rivian’s 2024 production guidance likely already reflects this.

Meanwhile, Rivian confirmed that it would report its Q1 earnings on May 7 after the market close. For the quarter, analysts are expecting revenue of $1.144 billion, signaling yearly growth of 73% but a quarter-over-quarter decline of 13%.

Unsurprisingly, the company is expected to stay unprofitable with a GAAP EPS loss of $1.28 compared to a loss of $1.45 a year ago. Rivian’s Q1 capital expenditure is expected to rise to $410 million, the highest since Q1 of 2022.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2024/04/rivn-stock-how-a-new-supply-chain-caused-rivian-to-miss-production-estimates/.

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