Automotive News Updates

Rivian inventory tumbles to lowest since IPO after manufacturing warning

  • Share


Rivian Automotive Inc.’s shares fell to the bottom stage since they began buying and selling final month after the electric-truck maker’s debut earnings report revealed a slower-than-expected improve in manufacturing.

The corporate expects to fall “a number of hundred autos brief” of its objective to make 1,200 this 12 months. CEO RJ Scaringe advised analysts after Thursday’s shut that ramping up manufacturing charges has been more durable than anticipated.

“Hiccups have been inevitable, however (Rivian) faces some proper off the bat,” Joseph Spak, an analyst at RBC Capital Markets, mentioned in a word, referring to the automaker by its inventory ticker. “We don’t wish to learn an excessive amount of into near-term points and consider it doesn’t impression the medium/long-term story, however it does spotlight the danger that RIVN has so much on its plate.”

The outcomes slowed the corporate’s momentum after Rivian pulled off the largest preliminary public providing of the 12 months. Rivian, backed by massive names together with Inc., is seen as one of many extra promising challengers to Tesla Inc.’s throne, with an electrical pickup and SUV along with plug-in supply vans.

Rivian’s shares fell 14 p.c to $93.87 in noon buying and selling in New York, the bottom they’ve traded at because the IPO priced at $78 a share. Via Thursday’s shut, the inventory had climbed 40 p.c since its debut.

The quarterly outcomes weren’t all dangerous. Web preorders for Rivian’s two R1 fashions rose to a mixed 71,000 on Dec. 15 from 55,400 on the finish of October. The corporate additionally introduced a new plant in Georgia to assist development.

“Rivian’s plans are bold,” Alexander Potter, an analyst at Piper Sandler & Co., mentioned in a word. “An apparently lower-than-expected capex burden for Rivian’s second plant, in Georgia, ought to greater than offset any considerations about near-term manufacturing choppiness.”


Supply hyperlink

  • Share

Leave a Reply

Your email address will not be published.