Rivian Automotive Inc RIVN shares slumped on Tuesday after the electric vehicle startup reported fourth-quarter deliveries that came in shy of forecasts. A fund manager suggested the Street reaction may have been misguided.
What Happened: Rivian delivered 13,972 EVs in the fourth quarter compared to the consensus estimate of 14,114, representing a 1% miss, said Future Fund Managing Partner Gary Black. The fourth quarter was down 10% from the third-quarter number of 15,600 units, he noted.
The analyst, however, emphasized the production figure. Rivian produced 17,541 vehicles, ahead of the consensus estimate of 15,000 units, he noted. “This is the more important number since unlike $TSLA, RIVN truly is supply constrained,” he said.
The consensus 2024 deliveries estimate for Rivian seemed light, given the company’s fourth-quarter production translated to an annualized rate of 70,000 units, Black said. “We expect 2024 production guidance of at least 70K when RIVN announces 4Q earnings in mid-Feb,” he added.
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Why It’s Important: Rivian is often touted as a company that can emerge as a strong rival to market leader Tesla Inc TSLA. Tesla reported Tuesday fourth-quarter deliveries and production that exceeded expectations, with the EV market leader also hitting its full-year delivery goal.
Black said previously in exclusive comments to Benzinga that he expected a shakeout in the EV industry, with Tesla, Rivian and Chinese EV maker BYD Co. Ltd. BYDDY BYDDF the likely winners and everyone else losing.
On a positive note, Rivian was not cash-strapped unlike many other EV startups and it has executed fairly better among the startups. The company was prepping to launch its next-gen low-end EVs based on its R2 platform.
Rivian last traded down 10.48% at $21 Tuesday at publication, according to Benzinga Pro data.
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