Why Rivian Automotive Shares Are Tumbling Today
Portfolio Pulse from Lekha Gupta
Rivian Automotive Inc (NASDAQ:RIVN) shares dropped approximately 10% following its Q4 and FY23 vehicle production and delivery report. The company produced 17,541 vehicles and delivered 13,972 in Q4, falling short of Q3's 15,564 deliveries and analysts' expectations of 14,430. However, Rivian exceeded its full-year production guidance with 57,232 vehicles produced and 50,122 delivered in 2023. The Q4 results will be announced on February 21. The decline in Rivian's shares comes amidst strong delivery numbers from U.S.-listed Chinese EV makers.
January 02, 2024 | 3:27 pm
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NEGATIVE IMPACT
Rivian Automotive's stock price fell after reporting lower-than-expected Q4 deliveries and a decrease from Q3, despite surpassing annual production targets.
Rivian's stock price is likely to face downward pressure in the short term due to the reported lower-than-expected delivery numbers for Q4, which is a key performance indicator for investors. The negative reaction is compounded by the fact that Q4 deliveries also fell short of the previous quarter's figures. However, the impact may be somewhat mitigated by the company exceeding its full-year production guidance, indicating operational progress.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100