EV maker Rivian beats expectations for deliveries as supply snag eases By Reuters

By Jaspreet Singh

(Reuters) – Rivian beat analysts’ expectations for fourth-quarter deliveries on Friday and said its production was no longer constrained by component shortages, a positive sign for the electric car maker aiming for its first profit.

The California-based company’s shares are up about 19%. The stock has lost more than 40% of its value in 2024.

Shortages of the part used in its R1 SUV and R1T pickups, as well as delivery vans, began in the third quarter and forced Rivian ( NASDAQ: ) to cut its annual production target in October.

“The previously discussed common component shortage in the R1 and RCV platforms is no longer a limitation for Rivian production,” the company said Friday.

Rivian delivered 14,183 vehicles in the three months ended Dec. 31, compared with estimates of 13,472, according to 15 analysts polled by Visible Alpha.

That jumped 42% from the previous quarter and marked Rivian’s highest shipments in more than a year, even as Amazon.com ( NASDAQ: ) , its biggest sponsor, made fewer shipments in the fourth quarter thanks to holiday season sales. to focus on.

Rivian produced 12,727 vehicles in the quarter, compared to estimates of 11,398 units.

Production for 2024 was 49,476 vehicles, down 13% from last year, but above the company’s lowered target of 47,000 to 49,000 units.

“Improved manufacturing, coupled with its focused product strategy, puts Rivian on a competitive footing at a time when Tesla (NASDAQ:) could benefit from updating its consumer appeal to meet current market conditions,” said eMarketer analyst Jacob Born.

Tesla reported its first drop in annual deliveries on Thursday, also weighed down by an aging lineup of EV pioneers.

Rivian cut costs sharply by renegotiating supplier contracts and overhauling its manufacturing processes to turn a profit for the fourth quarter.It also closed a $5.8 billion investment in German automaker Volkswagen ( ETR: ) as their technology joint venture part of the enterprise.

Electric power makers are grappling with slowing demand as higher borrowing costs push buyers toward cheaper gasoline-powered hybrids and older automakers focus on electric vehicles.

Rivian said it will report its fourth-quarter results on Feb. 20 after markets close.