Electric vehicle startup Rivian saw its stock hit its lowest level Thursday since the company went public in late 2021, as it struggles to grapple with a slow market and high costs.
Rivian stock plunged by more than 27% to $11.18 per share on Thursday morning after disappointing investors with its fourth-quarter earnings report late Wednesday. Since Jan. 1, the electric truck maker has seen its shares fall by more than 46%.
The Irvine, Calif.-based company said it would slash its salaried workforce by 10%, marking its third round of layoffs since July 2022. Rivian — no stranger to financial troubles — also told investors it expects to lose about $2.7 billion this year, even as it continues with a “company-wide cost transformation program.” It recorded $5.7 billion in losses from operations in 2023, down from operational losses of $6.8 billion in 2022.
Adding to its troubles, the startup plans to produce just 57,000 electric trucks in 2024, keeping in line with last year’s output but falling well below Wall Street’s expectations. The electric truck maker — which wants to become profitable by the end of 2024 — lost about $43,370 on every vehicle it delivered in October through December period.
“Our business is not immune to existing economic and geopolitical uncertainties,” CEO RJ Scaringe told investors Wednesday. “Most notably, the impact of historically high interest rates, which has negatively impacted demand.”
Other carmakers, including General Motors and Ford , have recently slowed down their EV investment plans as sales slow and customer interest wanes. Earlier this month, EV giant Tesla slashed the price of its best-selling Model Y by $1,000, to entice consumers driven away by high prices.
Newark, Calif.-based Lucid also saw its stock drop by 20% on Thursday morning after telling investors it expects to make 9,000 vehicles this year. That would be an increase from 8,500 in 2023, but well below analysts’ expectations of 14,000.