(Reuters) - Rivian Automotive Inc maintained its annual forecast on Monday as the electric-vehicle maker scrambles to lift output in an industry under pressure from an uncertain economy and a price war started by Tesla (NASDAQ:TSLA) Inc.
Shares of Rivian, whose backers include Amazon.com Inc (NASDAQ:AMZN), fell 2.4% in a broad decline for EV stocks that saw Tesla fall 6.3% after its own production report.
Rivian made 9,395 vehicles in the first quarter ended March, a drop of more than 6% from the previous three months. Deliveries also dipped over 1% from the prior quarter to 7,946 vehicles.
Output took a hit from supply-chain issues and a scheduled stop in the company's commercial production line for most of the quarter to introduce new technologies, including lithium iron phosphate (LFP) battery packs.
"We consider the numbers a significant disappointment," said CFRA Research analyst Garrett Nelson, who downgraded the stock to "strong sell" from "sell".
"The report likely indicates that Rivian has continued to burn through cash at an alarming rate and is nowhere near generating even a gross profit, much less a net profit."
Still, the EV maker reiterated its annual production target of 50,000.
CFO Claire McDonough said in February that Rivian expects much of the output to come in the second half due to supply constraints and the planned downtime in the first quarter.
GRAPHIC: Rivian's quarterly production slips in Q1 https://www.reuters.com/graphics/RIVIAN-PRODUCTION/lbvggjkkqvq/chart_eikon.jpg
The money-losing startup is also caught in a price war triggered by Elon Musk's Tesla, and analysts said it faces competition from the likes of Ford Motor (NYSE:F) Co's F150 Lightning, Chevrolet's Silverado and the GMC Hummer.
"Certainly more competition will be a headwind to orders," said D.A. Davidson analyst Michael Shlisky.
Tesla on Sunday posted record quarterly vehicle deliveries, but quarter-on-quarter sales growth was modest despite the price cuts as rising competition and a bleak economic outlook weighed.