© Reuters. FILE PHOTO: The Rivian name is shown on one of their new electric SUV vehicles in San Diego, U.S., December 16, 2022. REUTERS/Mike Blake
(Reuters) – Rivian Automotive Inc on Monday missed first-quarter production estimates as the electric-vehicle maker grappled with supply chain constraints, sending its shares down 4% in early trade.
Calling supply chain hurdles as Rivian’s “biggest constraint” in February, CEO R.J. Scaringe had flagged that the company did not have components to fully run its Normal, Illinois, plant across all lines and multiple shifts.
The Amazon-backed company had said it stopped its commercial production line for the majority of the first quarter of 2023 to introduce new technologies including lithium iron phosphate (LFP) battery packs.
Rivian produced 9,395 vehicles at its Normal plant in the quarter ended March, compared with Visible Alpha’s consensus estimates of 10,030 vehicles. In the fourth quarter, it built 10,020 vehicles.
Rivian’s quarterly production slips in Q1, https://www.reuters.com/graphics/RIVIAN-PRODUCTION/lbvggjkkqvq/chart_eikon.jpg
The Irvine, California-based company, however, reiterated its annual production target of 50,000.
“We expect full-year production to be back-end weighted due to supply constraints…and the commercial line downtime we’re taking in Q1 2023,” finance chief Claire McDonough said on an earnings call in February.
The electric-vehicle maker has been losing money on every vehicle it builds, and narrowly missed its annual production target of 25,000 units last year.
The company said it delivered 7,946 vehicles in the reported quarter, compared with estimates of 7,090 vehicles. It delivered 8,054 vehicles in the fourth quarter.
Electric-car maker Tesla (NASDAQ:) on Sunday said it delivered 422,875 vehicles in the quarter ended March, up 4% from the previous quarter.