Rivian has revealed that it narrowly missed earnings expectations for Q4 2022 but has set sky-high production and earnings goals for the new year.
Rivian (NASDAQ: RIVN) reported total revenues of $663 million vs. the $742.4 million estimated by Wall Street. However, the automaker did improve its earnings per share, $1.73 per share vs. $1.94 predicted by wall street. Overall, Rivian reported a loss of $1.72 billion in the fourth quarter of the year, a reasonably dramatic improvement from its $2.5 billion loss in Q4 2021.
Looking forwards, Rivian was more optimistic, though some would say not optimistic enough. Rivian is aiming to double the production of its R1 vehicles, reaching 50,000 total units in 2023, while also continuing to improve its profitability, aiming for profitability by the end of 2024. Some analysts were slightly disappointed, hoping the brand would aim for 60,000 vehicles produced this year and reach profitability sooner.
Rivian is also continuing to work towards its second generation of vehicle, the R2 line, which CEO RJ Scaringe hopes will not only be a massive jump in vehicle capability and feature set, but also in terms of profitability and cost reduction. The next generation of trucks will be built at Rivian’s upcoming plant in Georgia; however, a production timeline remains unclear.
On the technical side, Rivian boasted its new dual-motor drivetrain production line is up and running, allowing the company to continue to dramatically increase production and consumer choice this year, as well as its all-new LFP battery that it has put into its commercial vans currently being delivered to Amazon, a still large shareholder of the company.
Rivian reported that it still controls a massive $12.1 billion in cash, which should easily allow it to hold over until predicted profitability in 2024 if everything goes according to plan.
Rivian stock reacted poorly to the release, coming down roughly 2% after climbing by 6% earlier in the day. In aftermarket trading, the stock plunged by another 8%.