Rivian announces job cut as stock tanks on Q4 earnings

Rivian Automotive Inc (NASDAQ: RIVN) tanked in extended hours on Wednesday even though it reported better-than-expected revenue for its fourth financial quarter.

Why is Rivian stock taking a beating in after-hours?

The stock is being punished also because the EV maker issued disappointing production guidance for 2024. Rivian now expects to make about 57,000 electric vehicles this year - roughly the same as the number of vehicles it produced in 2023.

Analysts, in comparison, had called for close to 82,000 vehicles in 2024. Still, RJ Scaringe – the chief executive of Rivian Automotive Inc said in a press release today:

$RIVN delivered 13,972 vehicles in its fourth quarter – a 10.2% sequential decline that was roughly in line with expectations. Rivian stock is now down about 40% versus the start of this year.

Notable figures in Rivian Q4 earnings report

• Lost $1.52 billion versus the year-ago $1.72 billion
• Per-share loss also narrowed from $1.87 to $1.58
• Adjusted EBITDA printed at $1.096 billion as per the earnings report
• Total revenue roughly doubled year-on-year to $1.315 billion
• Consensus was $1.35 a share loss on $1.28 billion revenue

Note that Rivian Automotive ended its Q4 with $10.46 billion in total liquidity. CEO Scaringe also said on Wednesday:

Rivian to lay off 10% of its salaried employees

Rivian now expects to report a modest gross profit in the final quarter of 2024.

The Nasdaq-listed firm also revealed plans of lowering its headcount by about 10% amidst stagnant demand related partially to higher interest rates and other economic headwinds. Its press release reads:

Earlier in February, $RIVN opted to cut prices of its R1T and R1S vehicles by over $3,000. Wall Street currently has a consensus "overweight" rating on Rivian stock.