Due to supply chain issues, Rivian Automotive Inc., the electric vehicle (EV) manufacturer financed by Amazon, was unable to meet its Q1 production goals, the firm reported on Monday.
In the three months that ended in March, the California-based manufacturer only manufactured 9,395 EVs, falling short of the 10,030 vehicles predicted by Visible Alpha. In order to install new lithium iron phosphate (LFP) battery packs and research other technologies, Rivian has halted its commercial production line for the most of Q1.
“We expect full-year production to be back-end weighted due to supply constraints…and the commercial line downtime we’re taking in Q1 2023,” finance chief Claire McDonough said on an earnings call in February.
But the corporation reaffirmed its intention to build 50,000 cars this year. Rivian has lost money on every vehicle it has produced so far and came close to missing its goal of producing 25,000 units in 2017. Garrett Nelson, an analyst with CFRA Research, downgraded the stock of the company from “sell” to “strong sell,” citing continuing capital burn and a lack of profitability.
“The report likely indicates that RIVN has continued to burn through cash at an alarming rate and is nowhere near generating even a gross profit, much less a net profit,” said CFRA Research analyst Garrett Nelson, who downgraded the stock to “strong sell” from “sell”.
At noon trading, the price of Rivian’s stock dropped 2.3% to $15.13.
Tesla, an electric vehicle manufacturer, reported on Sunday that it delivered 422,875 vehicles in the March quarter, an increase of 4% over the prior quarter.
