Rivian Automotive missed fourth-quarter delivery expectations due to stiff competition and high borrowing rates that hurt electric vehicle demand. The company's stock fell roughly 10% on Tuesday after this setback. Rivian delivered 13,972 cars in Q4 2023, down 10% from prior quarter and below Visible Alpha's 14,430 prediction.

Rivian Stocks Depreciate

Amid EV market volatility, Rivian's delivery lag resulted in a downturn for its stock, contrasting with Tesla's exceeding expectations, prompting a rise in pre-market trading.

The surge in interest rates in the U.S. has escalated monthly EV payments, sparking a pricing competition initiated by industry leader Tesla. Amazon.com , a significant Rivian supporter and buyer, delays deliveries in the fourth quarter, prioritizing the holiday season.

Reuters provided details regarding this latest happening in the EV market.

Vitaly Golomb, a Rivian investor and EV expert, suggested that holiday schedules might have slowed deliveries compared to production rates. Despite this, Rivian's production rose by 7.5% to 17,541 vehicles in the last quarter, surpassing the projected 54,000 annual units with a final count of 57,232.

While an earlier bond issuance in October had caused concerns about Rivian's financial stability and led to a plunge in its stock value, the company is generally considered to be in a stronger position among EV startups like Lucid and Fisker

In contrast, Tesla outperformed market forecasts in its quarterly deliveries, meeting its yearly target.

Despite Rivian experiencing a decline in its stock due to an earlier-than-anticipated bond issuance in October, which sparked concerns about its financial well-being, the company is commonly perceived as having a stronger position compared to other EV startups like Lucid.

READ MORE: Toyota Surpasses Production Milestone Through High US, European Demand

Tesla,Rivian at Different Ends of EV Race

Tesla delivered a record 484,000 units, topping FactSet projections of 473,000, according to Forbes. Rivian's shares fell. This helped Tesla reach its annual 1.8 million delivery goal.

Tesla rose 0.6% pre-market Tuesday and maintained a small advance before 11 a.m.

Wedbush analysts hailed Tesla's performance as a triumph for CEO Elon Musk and the company, deeming the attainment of their delivery goal a significant success despite the challenging landscape for EVs.

Even with Tesla's successes, there were varied results. BYD beat Tesla in fourth-quarter 2023 deliveries for the first time, but Tesla still led the year.

About Rivian

MIT-educated engineer and lean manufacturing expert RJ Scaringe founded Rivian in 2009 as Mainstream Motors. Raised near Melbourne, Florida, Scaringe bonded with a neighbor over car work and enjoyed extensive outdoor activities like hiking and exploration.

With time, Scaringe realized his long drives into nature for hiking contributed to environmental pollution, conflicting with his desire to conserve the environment. This realization led to the inception of Rivian, driven by a commitment to address the environmental impact of transportation.

Following a brief shift to the name Avera Automotive, Scaringe and his small team moved away from using alliteration and ultimately decided on Rivian. The name originates from the Indian River, a place where Scaringe extensively explored during his youth in Florida using his rowboat.

Two years post-establishment, Rivian was engaged in developing electric vehicle tech and autonomous driving. Initially aiming for luxurious battery-powered vehicles, the current focus on rugged SUVs wasn't the original plan. They briefly explored a sporty coupe in 2011, though the project was abandoned. Shifting focus to SUVs seemed wise as many EV startups pursued luxury sedans.

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