Rivian Expects Production To Fall Short Of 2021 Target, Shares Fall

Rivian Automotive Inc RIVN shares tumbled after-hours on Thursday as the recently-listed electric vehicle maker said it expects to be a few units short of its 2021 production target of 1,200 electric vehicles.

What Happened: The Irvine, California-based Rivian reported a steep quarterly loss in its first earnings report since going public in November and said it faced issues bringing up a new supply chain.

The electric vehicle maker, which secured a high valuation after the November listing, said, as of Dec. 15, it has produced 652 R1 electric vehicles and delivered 386 of those, without giving a breakdown for each. 

“Our major goal is certifying the R1T, R1S, and EDV 700 for sale and starting deliveries through our direct-to-customer operations,” the company said in a filing.

Rivian has a direct-sales model and has reportedly received certifications from three key agencies this year, including the National Highway Traffic Safety Administration, to sell and deliver its R1T pickup truck and R1S SUV in all 50 U.S. states.

The Normal facility has an annual capacity to make 150,000 electric vehicles, which would be ramped to 200,000 units annually. 

"Chip shortages and delivery shortfalls are a near term issue that does not change our long term bullish thesis on this name. It’s a supply problem Rivian is seeing, demand is off the charts out of the gates," Wedbush analyst Daniel Ives said.

Wedbush has a $130 price target and an outperform rating on Rivian.

See Also: Tesla Bags Top-Rated EV Badge From Edmunds, Rivian Gets Editor's Choice Crown

The Amazon.com Inc AMZN and Ford Motor Co F-backed Rivian also confirmed plans for a second factory in Georgia, where it would build up to 400,000 electric vehicles a year.

Rivian said it will start construction of the $5 billion facility in the summer of 2022 and expects to start making vehicles there in 2024.

Rivian presently has a plant in Normal, Illinois. 

Steep Loss and Pre-orders: Rivian reported a wider net loss of $1.23 billion in the third quarter ended Sept. 30, compared with a $288 million loss a year ago. The company said it delivered 11 R1T electric trucks during the quarter and generated $1 million in revenue.  

Rivian said pre-order numbers for R1 electric trucks have jumped to 71,000 units in North America, as of Dec. 15, from 48,000 units at the end of September. 

Price Action: Rivian shares closed 5.33% lower at $108.87 a share on Thursday. The stock was further down 8.79% in the after-hours trading.