Electric car maker Rivian beats expectations on deliveries while easing supply issues

(Reuters) – Rivian beat analysts’ expectations for fourth-quarter deliveries on Friday and said its production was no longer constrained by component shortages, a positive sign for the electric car maker as it aims to post its first profit.

Shares of the California-based company rose nearly 5% in premarket trading. The stock lost more than 40% of its value in 2024.

The shortage of the part used in the R1 SUV and R1T pickup trucks, as well as delivery vans, began in the third quarter and forced Rivian to lower its annual production target in October.

“The previously discussed common component shortage on the R1 and RCV platforms is no longer a barrier to Rivian production,” the company said on Friday.

Rivian delivered more than 14,183 vehicles in the three months ended Dec. 31, compared with estimates of 13,472, according to 15 analysts surveyed by Visible Alpha.

That was a 42% jump from the previous quarter and represented Rivian’s highest deliveries in more than a year, although Amazon.com, its biggest backer, is receiving fewer deliveries in the fourth quarter due to its focus on holiday sales.

Rivian produced 12,727 vehicles in the quarter, compared to estimates of 11,398 units.

For 2024, production stands at 49,476 vehicles, down about 13% from the previous year but above the company’s low target of 47,000 to 49,000 units.

Rivian sharply cut costs by renegotiating supplier contracts and revamping its manufacturing operations to achieve fourth-quarter gross profit. It also entered into a technology joint venture with German carmaker Volkswagen last year that will provide a $5 billion lifeline.

Electric car makers face sluggish demand as higher borrowing costs push buyers toward cheaper gasoline-powered hybrids and older automakers focus on rolling out electric vehicles.

Bigger rival Tesla reported its first drop in annual deliveries on Thursday, also weighed down by its aging EV-leading lineup.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Sriraj Kalluvilla)