Rivian Automotive nasdaq Rivn Shares Fell As Q4 Deliveries Miss Estimates Amid Tough Competition

Rivian Automotive (NASDAQ: RIVN) Shares Fell as Q4 Deliveries Miss Estimates Amid Tough Competition

Rivian Automotive (NASDAQ: RIVN) shares nosedived more than 10% on Tuesday as the American electric vehicle (EV) maker fell short of market estimates for fourth-quarter deliveries. The challenging landscape of fierce competition and elevated interest rates has impacted the demand for Rivian’s electric vehicles.

In Q4 2023, the company delivered 13,972 vehicles, a 10% decrease from the previous quarter and below the estimated 14,430 units per a Visible Alpha poll of 13 analysts.

The surge in interest rates in the United States has led to higher monthly payments for electric vehicles, triggering a price war initiated by industry leader Tesla.

Amazon.com (NASDAQ: AMZN), Rivian’s primary backer and a large customer, also refrains from taking deliveries in the fourth quarter, prioritizing focus on the holiday season.

Vitaly Golomb, a Rivian investor and expert in electric and autonomous mobility, suggested,

“It’s likely that holiday schedules slowed down deliveries vs production.”

Despite a delivery setback, Rivian produced 17,541 vehicles in the last quarter, a 7.5% increase from the previous quarter. Annual production of 57,232 units outperformed the company’s forecast of 54,000.

On the other hand, Tesla (NASDAQ: TSLA) surpassed market estimates in its quarterly deliveries, achieving its annual goal.

Rivian’s stock had experienced a plunge in October following an earlier-than-expected bond issuance, sparking concerns about the company’s financial health. However, compared to other EV startups like Lucid Group (NASDAQ: LCID) and Fisker (NYSE: FSR), Rivian is viewed as relatively well-positioned.

Rivian Automotive (NASDAQ: RIVN) has chosen to maintain its vehicle prices, differentiating itself from competitors and relying on sustained demand. Last month, the company secured a deal for its electric vehicles with U.S. wireless carrier AT&T, marking a significant development after the exclusivity pact with Amazon concluded in November.

Analysts on Tuesday expressed confidence that Rivian’s R1T pickup truck, starting at $73,000, is unlikely to face substantial competition from Tesla’s Cybertruck, unveiled in late November.