Rivian shares fall on mixed results, new recall

Rivian Automotive reported mixed quarterly results along with another recall.

Shares of the electric automaker are down more than 7% in premarket trading.

The company announced it is recalling more than 12,000 vehicles to fix a faulty sensor in the front passenger seat, according to the Wall Street Journal.

It is the second major recall by Rivian in less than six months and covers nearly 89% of the vehicles it produced through September.

EV MAKER RIVIAN CUTTING 6% OF WORKFORCE, BUT MANUFACTURING JOBS SPARED

Rivian said it is not aware of any accidents or injuries related to the issue.

The automaker reported a net loss of $1.72 billion for the fourth quarter, compared to a $2.46 billion loss in the year ago period.

The adjusted per-share loss was $1.73, which was less than the $1.96 loss analysts had expected, according to FactSet.

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Rivian fell short of Wall Street’s expectations on revenue, reporting sales of $663 million.

Rivian took a hit when the U.S. changed the rules on federal tax credits for EV purchases, setting both local manufacturing requirements and price caps on qualifying vehicles. 

Many Rivian customers don’t qualify for the tax credit.

For this year, Rivian said it aims to produce 50,000 vehicles, below what several analysts had predicted ahead of earnings.

RIVIAN ANNOUNCES MAJOR RECALL OF VEHICLES

Rivian said production this year would be hit by supply chain issues and planned factory shutdowns to boost capacity for consumer vehicles at its Illinois plant.

Ticker	Security	Last	Change	Change %
RIVN	RIVIAN AUTOMOTIVE INC.	12.22	+0.67	+5.80%

For the full year 2022, the company lost $6.75 billion on $1.66 billion in revenue.

To conserve cash, the company has cut spending, had two rounds of layoffs and is delaying a number of products.