Rivian Tumbles Most Ever as Job Cuts Signal Stalled Momentum

(Bloomberg) — Rivian Automotive Inc.’s shares fell the most on record after the electric-vehicle maker issued a disappointing production forecast and announced another round of job cuts.

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The maker of plug-in pickups, SUVs and delivery vans expects to build just 57,000 vehicles this year, in line with last year’s output and well short of analysts’ average estimate for more than 80,000 units. The company said late Wednesday it will reduce its salaried workforce by about 10%, its third paring in the last year and a half.

The outlook underscores the challenges Rivian is having with scaling production and stemming losses amid a slowdown in the battery-powered vehicle market. The company seen as a challenger to Tesla Inc. has struggled with supply-chain snags and now must contend with more budget-conscious consumers.

“Our business is not immune to existing economic and geopolitical uncertainties,” Chief Executive Officer RJ Scaringe said on a conference call. “Most notably, the impact of historically high interest rates, which has negatively impacted demand.”

Its shares slumped as much as 26% to $11.36 after the markets opened Thursday in New York, the biggest drop and the lowest level since Rivian went public in late 2021.

“This was a rough quarter and call,” Evercore analyst Chris McNally, who has an “outperform” rating on Rivian’s stock, wrote in a research note. He called the production guidance for the full year “clearly disappointing.”

Rivian will prioritize cost-cutting over volume growth this year, though it’s still expecting an adjusted loss of $2.7 billion before interest, taxes, depreciation and amortization. The Irvine, California-based company laid off workers early last year and in mid-2022.

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Rivian builds the R1T pickup, which starts at $69,900, and R1S sport utility vehicle, with a base model cost of $74,900, at a plant in Normal, Illinois. It also makes a battery-electric delivery van for…