Rivian
Overall, Rivian's stock has been a major underperformer since making its debut in November of last year. It was one of the highest valued IPOs in history, and many considered it to be the automaker with the second-best EV tech. It also didn't' hurt that investors in the company included Amazon
Inside the Numbers
In Q4, Rivian reported a loss of $2.43 per share which was wider than analysts' expectations of a loss of $1.97 per share. Its revenue fell short as well at $54 million vs. $60 million.
Its forecast also underwhelmed with expectations of 25,000 electric trucks and SUVs while analysts were looking for something between 40,000 to 50,000. Like a lot of automakers, Rivian's productionsi constrained by supply chain issues for necessary components.
The company is also heavily spending to ensure future production. In 2021, it spent $2.6 billion, and this is expected to increase to $3 billion in 2022. It also didn't give any guidance for 2022, but analysts are forecasting a loss of $4.97 per share and $3.2 billion in revenue.
Despite its hiccup, it's sticking to its 2023 production target of 150,000 vehicles per year. However, there's going to be an expected crunch for EV inputs as automakers all over the world are looking to pivot to EVs and away from ICE vehicles. Additionally, Russia is a major source of inputs like nickel which are also soaring in value.
Despite questions from analysts, Rivian was circumspect about how many deliveries it made to Amazon of its electric delivery vans which many are quite excited about. Shares of Rivian, which went public in November, are down about 60% this year as of Thursday's close, after the company missed production targets for 2021. Rivian opened for trading at $106 which was well above its pre-IPO price. The stock nearly doubled in its first few days of trading which equated to a value of over $150 billion. Since then, Rivian is down 79%.
There's also been a major change in terms of investors' appetites for risk and their tolerance for a company that is projected to lose money for many years before it can fully scale production and reach profitability. Even for investors who are bullish on Rivian and its potential, they should consider being patient given the numerous headwinds faced by the companies and growth stocks.