As the cartech company ramped up production for the final months of 2022, Rivian revealed that they missed the annual target of producing 25,000 vehicles for the year. The company only built 24,337 vehicles despite experiencing a late-year surge in the last quarter.
NEW YORK, NEW YORK - NOVEMBER 10: A Rivian electric truck ad is seen displayed on a screen in Times Square on November 10, 2021 in New York City. Rivian, an electric truck maker backed by Amazon and Ford, made its debut at Nasdaq going public with an IPO valued at close to $70 billion with 153,000,000 shares of Class A common stock at a public offering price of $78.00 per share. (Photo by Michael M. Santiago/Getty Images)
Michael M. Santiago/Getty Images
(Photo : Michael M. Santiago/Getty Images) NEW YORK, NEW YORK - NOVEMBER 10: A Rivian electric truck ad is seen displayed on a screen in Times Square on November 10, 2021 in New York City. Rivian, an electric truck maker backed by Amazon and Ford, made its debut at Nasdaq going public with an IPO valued at close to $70 billion with 153,000,000 shares of Class A common stock at a public offering price of $78.00 per share.
Missing the Annual Target
Rivian fell short of its annual target of building 25,000 vehicles for the whole year of 2022. Based on a report from Bloomberg, the car manufacturer missed 663 vehicles to reach its goal. The company filed with the Securities and Exchange Commission.
Before the year ends, Rivian experienced a late-year surge of purchases last quarter, producing 10,020 vehicles in just one quarter. Despite this success, the company failed to meet its annual goal. Originally, the initial production forecast was 50,000 but was later on changed in mid-2022.
Only 24,337 vehicles were produced by the company at the Normal, Illinois plant, with 20,332 of those delivered to the customers.
Meanwhile, Chief Executive R.J. Scaringe described this number of produced vehicles as "an incredible achievement because of the commitment and passion of our entire team."
Possible Causes
Scaringe clarified that the company built 25,051 vehicles and reached the goal. However, only 24.337 of those were cleared for delivery to customers and were considered 'factory gated'. More than 700 vehicles have awaiting parts, software validation, wheel alignment, and charging.
Adding to this are the supply chain issues that made the plant close temporarily for 20 days, which affected the company's operations for 50 other days. An additional five days were added to the closure due to bad weather.
Rivian's Shares
This was the latest addition to the company's several setbacks. But aside from the production target, Reuters reported that the company also announced that they will be closing the year with shares closed down nearly 6% to $17.34.
These are much lower shares compared to its prime days in early November 2021, as the company reached a high of around $130. This was also a surprise given that they reached its highest goal just 14 months ago.
Tesla, on the other hand, also experienced a decrease in its shares despite being the world's largest electric vehicle maker on the market for its fourth-quarter deliveries. The company shed another $50 billion in value and is currently worth $341 billion.
These numbers were low from their 1.24 trillion peaks exactly one year ago, making them have a decrease of 72%.
Before the year ended, Automotive News reported that Rivian received a complaint filed by the Illinois Automobile Dealers Association that will require the company to sell new motor vehicles only through franchised dealers to prohibit them from selling directly to customers in Illinois.
Eventually, the case was dismissed by an Illinois state trial court.
