Rivian Automotive (NASDAQ:RIVN) met its 2023 production targets but fell short of market expectations for vehicle deliveries. Shares of the Irvine, California-based company dropped over 10% on Tuesday’s intraday.
As noted in a press release, Rivian delivered 13,972 vehicles in the fourth quarter, which is 10% lower compared to the previous quarter. The numbers also fall short of analysts’ expectations, which estimated 14,430 vehicle deliveries in Q4 2023.
For the full year, Rivian reported that it was able to deliver 50,122 vehicles. While this number represented a 146.5% increase year-over-year, it was still below analyst expectations. For context, the FactSet consensus for Rivian’s full-year 2023 deliveries was 51,000 vehicles.
While Rivian’s deliveries fell short of estimates, the company’s production saw some improvement. Rivian manufactured 17,541 vehicles in Q4, a 7.5% increase from the previous quarter.
Rivian’s annual production total also reached 57,232 units, ahead of the company’s self-imposed target of 54,000 vehicles. Rivian’s results represented an almost 135% increase year-over-year.
Higher interest rates have undoubtedly weighed on vehicle affordability, particularly for premium EVs like Rivian’s R1T pickup and R1S SUV, as noted in a Reuters report. Increased competition in the electric truck segment from vehicles like the recently launched Tesla Cybertruck may have also played some role in Rivian’s Q4 results.
Rivian investors appear to have been disappointed by the company’s Q4 and FY 2023 results. As of writing, RIVN shares are trading down 10.19%, at $21.07 per share. Rivian’s market cap as of writing stands at $20.37 billion, a far cry from its peak of $127.28 billion in November 2021.
In comparison, Tesla, which also reported its deliveries later Tuesday, handily beat estimates and met its annual target. It should be noted, however, that Tesla is a far more mature company than Rivian, and the company practically went through hell and back several times before it became consistently profitable.
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