Rivian Q4 results: ‘supply challenges to persist through 2022’

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Rivian Automotive Inc (NASDAQ: RIVN) stock sunk 15% after-hours on larger-than-expected loss for the fiscal fourth quarter as supply constraints and other issues continued.

Important points in Rivian Q4 results

  • Net loss came in at $2.46 billion that translates to $4.83 per share.
  • In the same quarter last year, net loss was capped at $353 million.
  • Adjusted for non-recurring items, Rivian reported $2.43 a share in loss.
  • Revenue printed at $54 million compared to nothing last year.
  • FactSet consensus was for $1.88 of adjusted per-share loss on $60.5 million in sales.
  • Concluded Q4 with 83,000 preorders for electric truck and SUV.

Supply constraints to continue through 2022

On top of supply constraints, Rivian cited the pandemic, severe weather, and a planned shutdown to fine-tune production lines as factors that weighed on production. In the letter to shareholders, however, the company said:

Our plant in Illinois is starting to ramp nicely despite the quarter getting off to a slow start and persistent supply constraints. We anticipate supply challenges to persist through 2022. We’re working closely with our suppliers to identify component constraints early so that we can support the supplier ramp and/or develop alternative solutions if needed.

Late last year, Rivian said it will spend $5.0 billion to set up a new production facility in Georgia. Rivian stock has now more than halved from its IPO price of $78 a share.

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Source: https://invezz.com/news/2022/03/10/rivian-q4-results-supply-challenges-to-persist-through-2022/