Rivian Automotive Inc. (NASDAQ:RIVN) shares surged 1.21% to $17.55 in pre trading session on Wednesday as dropped around 6% in previous session after the firm declared that due to the manufacturer ramping up production in the year’s final months, it narrowly missed its annual target of 24,337 electric vehicle production in 2022.
According to a statement released on Tuesday, the firm produced 10,020 cars during the previous quarter. Rivian, a company located in Irvine, California that produces cars for two consumer lines as well as an Amazon.com Inc. delivery van, had anticipated producing 25,000 units for the whole year. After normal trading in New York ended at 4:56 p.m., the shares decreased by less than 1%. In 2022, according to Rivian, it would have delivered 20,332 automobiles to clients.
Rivian Automotive, a manufacturer of electric vehicles, stated in a filing late on Tuesday that it just missed its full-year production target of 25,000 vehicles in 2022. Rivian’s shares closed nearly 6% down at $17.34 before the Securities and Exchange Commission made the filing public, but there was no movement in after-hours trading.
Rival Tesla, which also fell short of its production goals, saw a worse trading day as its shares fell more than 12% to $108.10 before plunging beyond business hours.
Rivian reported on Tuesday that its Normal, Illinois, facility manufactured 24,337 vehicles last year and delivered 20,332, halving its initial 50,000 output goal for mid-2022. It constructed 10,020 units and shipped 8,054 during the third quarter.
The fledgling firm, which went public in November 2021, has seen a string of setbacks, with the lack of planned output being the most recent.
Rivian, like other EV manufacturers, has been under pressure from supply-chain issues. In December, Rivian abandoned a proposal to partner with Mercedes-Benz to produce delivery vans in Europe. Earlier, Rivian delayed the start of manufacturing of its more compact R2 car family until 2026 at the $5 billion factory that the firm hoped to build in Georgia.
The business constructed 25,051 vehicles in Normal, according to Chief Executive R.J. Scaringe, but only 24,337 of those were “factory gated,” or ready for delivery to consumers.
Scaringe said that more than 700 vehicles at year’s end were “can’t count toward our official tally” because they were awaiting components, software certification, wheel alignment, and charging.
He praised “the effort and enthusiasm of our whole team” and called the final output total “an fantastic achievement.” Scaringe claimed weather-related closures of the facility for an additional five days along with supply-chain problems that resulted in the plant being shut down for 20 days and 50 other days.
Since only 14 months ago, when Rivian went public, its stock has fallen precipitously. The company’s shares finished December 30 at $18.43, down from a high of around $130 in early November 2021, and they dropped further on Tuesday.
