Rivian Automotive’s Q4 deliveries miss sent company shares down nearly 10% on Tuesday. Due to increasing competition and high interest rates, the company delivered 13,972 vehicles in the last three months of 2023 (10% lower than the previous quarter) and below market estimates of 14,430.
With the relentless price reductions from Tesla and higher interest rates raising monthly payments of vehicles across the market, Rivian’s vehicle sales have slowed. Add in Amazon not taking deliveries during Q4 and one can deduce some of the reasons behind Rivian’s delivery miss.
Rivian reported production of 17,541 vehicles in Q4 (up 7.5% from the prior a quarter) to bring annual production numbers to 57,232 vehicles to beat its forecast of 54,000.
It remains to be seen whether the Rivian R1T pickup truck will face competition from Tesla’s Cybertruck, but one can assume that once Cybertruck production ramps there will be many tracking sales volumes.