EV Maker Rivian Q4 Deliveries Miss Estimates, Stock Tumbles

(RTTNews) - Rivian Automotive, Inc. (RIVN) stock experienced a drop on Tuesday following the announcement of its fourth-quarter production figures, which fell below estimates due to lower demand and increased competition in the electric vehicle (EV) industry.

Currently, Rivian's stock is falling by 10.85%, to $20.92 on a volume of 39,504,854. It traded between $11.68 and $28.06 in the past 52-week period.

Rivian reported that out of the 17,541 vehicles produced at its Normal, Illinois facility, it delivered 13,972 vehicles in the fourth quarter of 2023. This figure missed analysts' estimates of 14,430 by about 3.2%.

The California-based company produced 57,232 units annually, which beat its own production forecast of 54,000 units.

Higher interest rates in U.S. had pushed the monthly instalments of electric vehicles higher, which resulted in lower demands for such vehicles. This trend initiated a price reduction among manufacturers, but Rivian has refrained from taking such steps, aiming to maintain sustainable demand.

The company stated that it will announce fourth-quarter earnings on February 21, after the closing of market.

Last month, Rivian had signed a deal with AT&T to include Rivian Commercial Van and R1 vehicles to the latter's fleet in early 2024.