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Key Tesla Rival Rivian Misses 2022 Production Target As Supply Chain Challenges Hurt

Published 04/01/2023, 11:45
Updated 04/01/2023, 13:10
© Reuters.  Key Tesla Rival Rivian Misses 2022 Production Target As Supply Chain Challenges Hurt
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Benzinga - Tesla Inc. (NASDAQ: NASDAQ:TSLA) rival Rivian Automotive Inc. (NASDAQ: RIVN) reported late on Tuesday below-par production and deliveries for the fourth quarter and 2022.

What Happened: Rivian said it produced 24,337 vehicles for 2022, which came in below the company’s annual production target of 25,000 units. The 25,000-unit target the California-based electric vehicle set for itself was a sharp cutback the company announced in March to its original guidance of 50,000 units.

Rivian said on Tuesday it delivered 20,332 vehicles in 2022.

Fourth-quarter production and deliveries came in at 10,020 and 8,054 vehicles, respectively. The company currently sells RIT, an electric pickup truck, R1S, an SUV, and an EV delivery van, which it sells exclusively to Amazon (NASDAQ:AMZN) Inc. (NASDAQ: AMZN). The company also has a fleet version of the delivery van.

Rivian began customer deliveries of its vehicles in late 2021.

Rivian CEO RJ Scaringe told employees in an email that over 700 vehicles were "awaiting parts or other work" to be completed at year-end, Wall Street Journal reported. He reportedly blamed the missed production target on a "global supply chain crisis."

Why It’s Important: Rivian has the distinction of being the first company to sell an electric pickup truck and executed relatively better than its peers. Despite the relative outperformance vis-a-vis other upstarts, the company’s stock fell a staggering 82% in 2022.

Price Action: On Tuesday, the stock fell 5.91%, to $17.34, according to Benzinga Pro data, as it moved in sympathy with EV leader Tesla. The stock traded up 1.04% to $17.52 in premarket trading on Wednesday.

Read Next: Rivian Is Finally Starting To Turn The Corner, Analyst Says Ahead Of Q2 Results

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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