Rivian Automotive Inc RIVN shares are trading lower Wednesday after the company reported fourth-quarter results and issued a recall on several vehicles.
- Q4 Revenue: $663 million missed estimates of $742.39 million
- Q4 EPS: Loss of $1.73 beat estimates for loss of $1.94
Rivian said it produced 10,020 vehicles and delivered 8,054 of them during the fourth quarter as it battled supply chain issues. Production totals were up 36% sequentially. Rivian noted that it expects supply chain problems to persist in 2023.
The Amazon.com Inc AMZN- backed EV maker said it has a preorder backlog that extends into 2024. Rivian expects to produce 50,000 vehicles in full-year 2023.
Related Link: Rivian Q4 Earnings Recap: EV Delivery, Production Totals, 2023 Guidance, R2 Update And More
Analyst Assessment:
- Truist Securities analyst Jordan Levy maintained Rivian with a Buy and lowered the price target from $50 to $44.
- Needham analyst Chris Pierce reinstated Rivian with a Buy and announced a $26 price target.
- Mizuho analyst Vijay Rakesh maintained Rivian with a Buy and lowered the price target from $42 to $37.
What Else: Rivian also plans to recall 12,716 vehicles to fix an automatic locking retractor sensor in the front passenger seat, according to the National Highway Traffic Safety Administration (NHTSA).
In a statement, Rivian said the recall is limited to a "very small percentage of vehicles," impacting certain model year 2022 R1S and R1Ts. This marks Rivian's second recall in the last six months.
See Also: Rivian To Recall Over 12,000 Vehicles Due To Passenger Seat Belt Issue
RIVN Price Action: Rivian shares are down 8.65% at $17.63 at time of publication, according to Benzinga Pro.
Photo: courtesy of Rivian.
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