By Dhirendra Tripathi
Investing.com – Rivian (NASDAQ:RIVN) stocks tumbled 12% in premarket Friday after the EV-maker said its production in 2022 is likely to be 25,000 units as supply chain issues hamper production.
Without the constraints, its factory could make 50,000 vehicles, Rivian said.
Gross margins will be negative, the company said, citing inflationary pressures while it tries to minimize price increases.
Rivian reported a fourth quarter net loss of $2.46 billion, much wider than analysts’ estimates. Revenue of $54 million was well behind expectations.
The company expects a "significant" production ramp-up in the second quarter of the EDV-700 van for Amazon.com (NASDAQ:AMZN), Reuters quoted CEO R. J. Scaringe as saying.
According to the news agency, Rivian is exploring ways to further expand its commercial relationship with Amazon, which owns a 20% stake in the startup and has ordered 100,000 vans. Rivian will begin producing a second Amazon van this year, the EDV-500, which is shorter and narrower than the EDV-700.
Rivian has 83,000 pre-orders for its R1T pickup and R1S utility vehicle as of March 8, up from 71,000 in mid-December.
The company’s stock made a blockbuster debut on November 11 and in no time commanded a market cap of almost $162 billion without a revenue on books, easily surpassing legacy automakers like General Motors (NYSE:GM) and Ford (NYSE:F).
Since then, the stock is now down to less than a fourth of its value but still carries a market cap of over $37 billion when revenue in the full year was $55 million.
Rivian ended the quarter with $18.4 billion in cash, cash equivalents, and restricted cash, excluding additional lines of credit.