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Rivian (RIVN) reported its fourth quarter and full year 2021 financial results on Thursday after the closing bell. Shares of the EV startup fell as much as 10% immediately following the release.
While some analysts were forecasting 40,000 units will be produced this year, Rivian estimates it will produce 25,000 vehicles for the full year of 2022.
The following are the company's fourth quarter top and bottom line results versus consensus estimates expected by Wall Street analysts, according to Bloomberg data:
Adjusted loss per share: —2.43 cents versus -2.05 expected
Revenue: $54 million versus $63.99 million expected
In its shareholder letter released on Thursday, Rivian stated:
"Through the first half of Q1 2022, we experienced several headwinds and other factors impacting our production ramp, including a planned 10-day shutdown to fine-tune our production lines, significant supply chain limitations, a large spike in COVID-19 cases likely attributable to the Omicron variant, and severe winter weather in Central Illinois."
"Like the rest of the industry, we anticipate supply chain challenges to persist through 2022. We are working closely with our suppliers to identify component constraints early so that we can support the supplier ramp and/or develop alternative solutions if needed."
Rivian says as of March 8, it produced 1,410 vehicles in 2022 and 2,425 vehicles since the start of production.
The Irvine, California–based company is pre-profitable and still in the process of ramping up its production.
Rivian produced 1,015 vehicles and delivered 920 by the end of 2021.
The EV startup's stock is down more than 55% year to date as investors have rotated out of tech and high growth names amid rising inflation the the likelihood of tighter monetary policy.
Rivian shares also took a beating this year immediately following a couple of significant developments:
The EV maker backed by Ford (F) and Amazon (AMZN) recently announced it would raise the price of its R1T and R1S electric pickup trucks due to inflationary pressures.
The increase was initially supposed to apply to exiting and future orders. After heavy criticism from pre-order holders, CEO R.J. Scaringe apologized and promised Rivian would honor prices for orders already in place and for anyone who had canceled due to the hike.
The price increase highlights the challenges facing auto makers amid rising costs for parts and raw materials.
"Everything from semiconductors to sheet metal to seats has become more expensive and with this we have seen average new vehicle pricing across the U.S. rise more than 30% since 2018," wrote Scaringe in a pricing update statement on March 3rd.