Rivian Q4 2023 earnings report disappoints: production forecast stagnates, announces layoffs

Rivian (RIVN) has published its Q4 2023 and full year earnings report, posting mixed results for the fourth quarter and a 2024 production outlook that fell short of analyst forecasts. The automaker also announced it is slashing its workforce by 10%.

Rivian reported a total revenue of $1.315 million for Q4 2023, driven by the delivery of 13,972 vehicles. This performance contributed to an annual revenue of $4.434 billion, supported by the delivery of 50,122 vehicles throughout the year.

Additionally, the company benefited from $39 million in revenue from the sale of regulatory credits in the quarter, totaling $73 million for the fiscal year.

Despite a strong end to the year, Rivian faced challenges in achieving profitability. The automaker’s net loss for Q4 2023 was $1.52 billion, improving from the $1.72 billion loss in Q4 2022. The annual net loss also saw an improvement, from $6.75 billion in 2022 to $5.4 billion in 2023. According to Rivian, these figures reflect the high costs associated with ramping up production, supplier-related expenses, and investments in new technology for the R1 platform, including the new Enduro motors.

Rivian was able to more than double its production and deliveries compared to 2022, exceeding its annual guidance by more than 7,000 units. Despite this the company managed to keep its operating expenses relatively flat year-over-year. Rivian ended Q4 2023 with nearly $9.84 billion in cash, cash equivalents, and short-term investments.

Looking ahead, Rivian says it expects to produce 57,000 vehicles in 2024, citing “economic and geopolitical uncertainties and pressures”, most notably the impact of ” and “historically high interest rates” as reasons for the stagnation. This is the same amount as it produced in 2023, representing no growth year-over-year, and well off Bloomberg consensus estimates of 80,000 units for the year.

In a press release announcing the publication of the report, Rivian also said it is slashing its salaried workforce by approximately 10%. The company did not provide any further details on the job cuts.

Shares in Rivian have dropped nearly 15% in after-hours trading at the time of writing.

You can read Rivian’s full report below.

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