Rivian R1T electric pickup truck during the company’s IPO outside the Nasdaq Markets site in New York on Wednesday, November 10, 2021.
Bingwan | Bloomberg | Getty Images
Share Rivian AutomotiveElectric car startups unveiled through a blockbuster IPO last month plunged to new lows on Friday after the company cut its 2021 car production target.
Rivian said it expects to fall after the market closes on Thursday “There is a shortage of hundreds of vehicles.” The production target for this year is 1200 units. The company said it faces supply chain issues and the challenge of increasing production of complex batteries that power vehicles.
“As I said before, launching such a production system is a really complicated orchestra,” said Rivian CEO RJ Scarlinge. “We’re growing almost as expected. Battery constraints are actually the result of launching highly automated lines, and as I said, it’s long-term for us. I will not present an issue. “
Rivian’s share price fell 15% early Friday morning, then recovered and ended the week at $ 97.70 per share, dropping 10.3% that day. Since Rivian opened trading on November 10, the daytime lows of $ 92.62 per share and closing prices have been new lows, respectively. Rivian shares have fallen 3.4% since the IPO.
A sharp drop occurred, despite warnings from Wall Street analysts that production would undoubtedly surge towards the launch of the EV. Overall, analysts downplayed production cuts and reflected the company’s view that it had little or no impact on Rivian’s long-term assessment.
“I personally don’t think it’s a big deal,” Wells Fargo analyst Colin Langan said on Friday at CNBC. ‘Squawk on the Street.“It’s a disappointing start, but it’s pretty small.”
On the plus side, Rivian said the total number of reservations for electric R1T pickups and R1S SUVs increased to 71,000 as of December 15, up 28% from the latest 55,400 in November. That’s a higher rate than the company expected.
The update was accompanied by Rivian’s first quarterly report as a public company and confirmation of plans for a new $ 5 billion plant in Georgia, which is scheduled to begin production in 2024.
Rivian’s third-quarter results were in line with Wall Street’s earnings forecast and the company’s earlier estimates. As part of that IPO.
Rivian reported an operating loss of $ 767 million and a net loss of $ 1.23 billion in the third quarter. The company previously predicted an operating loss of $ 745 million to $ 795 million and a net loss of $ 1.21 billion to $ 1.28 billion.
–CNBC Michael Bloom Contributed to this report.
Rivian’s share of EV start-ups hit new lows following the 2021 cut in production
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