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In its Q4 2022 report, Rivian explained that supply chain constraints continue to affect its production capacity.
Rivian Automotive Inc (NASDAQ: RIVN) recently posted its Q4 2022 earnings results, which showed mixed performances. The electric vehicle company’s revenue fell below expectations, although its adjusted loss per share fared better. Furthermore, Rivian’s production guidance for 2023 is almost twice last year’s amount but still short of the consensus estimate for the period.
Nonetheless, the EV company, which saw its shares slip 8% in extended trading, remains focused on ramping up the production of some vehicle categories.
The latest Rivian earnings result also comes amid challenging times for the EV maker. So far, Rivian has weathered slower-than-anticipated production and unexpected pricing pressure. In addition, the company plans to trim its headcount by 6% to conserve cash in a tight tech sector.
Rivian Q4 2022 by the Numbers
For the fourth quarter of last year, Rivian raked in a revenue haul of $663 million compared to the $742.4 million analysts expected. The California-based organization saw an adjusted loss per share of $1.73 versus the consensus estimate figure of $1.94.
Yesterday, Rivian stock eventually closed at $19.30 a share, representing a 4.6% upside from its initial extended trading dip. The EV firm also reported an adjusted loss before interest, depreciation, taxes and amortization of approximately $5.2 billion last year. This was narrower than the $5.4 billion guidance loss in November.
Rivian forecasted it would produce 50,000 cars in 2023 following the mixed Q4 2022 outing. Although this number roughly doubles last year’s output, it still falls significantly short of the 60,000 vehicle production analysts expected. In a letter to shareholders, the EV manufacturer identified supply chain constraints as the bane of its production capacity. As Rivian put it:
“Supply chain continues to be the main limiting factor of our production; during the quarter, we encountered multiple days of lost production due to supplier shortages. We expect supply chain challenges to persist into 2023 but with better predictability relative to what was experienced in 2022.”
Last quarter, Rivian produced 10,020 vehicles and delivered 8,054 against a fiscal year total delivery of 20,332 cars and 24,337 produced.
2023 Business Outlook
Rivian also revealed that it would prioritize ramping up the production of its R1 truck and SUV this year. The EV maker also plans to increase the production capacity of the electric van it builds for its largest shareholder, Amazon (NASDAQ: AMZN).
Other stated Rivian business plans for 2023 include driving costs down and delivering exceptional end-to-end customer experience. The company explained that even though inflation has crippled its supply chain, it will increase productivity while reducing material costs. Such cost-cutting measures entail trimming engineering and vehicle design, as well as other commercial cost-down efforts. In Rivian’s own words:
“We remain confident in our ability to continue to drive our cost per vehicle lower by ramping production and leveraging our fixed costs, as well as our commercial, engineering design changes, and operational cost down efforts.”
Early last month, Rivian announced its intent to lay off around 840 employees as part of its July restructuring plan. According to the EV manufacturer, its decision to downsize was also influenced by the ongoing price war in its industry.