Rivian (RIVN) faces critical test in Q4 2023 earnings as EV stocks lose luster
Rivian (RIVN) is set to report its Q4 2023 earnings after the market close on Wednesday, February 21, 2024. EV makers, including Rivian, look to show they can gain control of costs as output ramps up.
Still expanding and lowering costs
Rivian has continued to outpace rival EV startups with its rugged R1S and R1T adventure vehicles.
The EV maker delivered over 50,000 vehicles last year, more than double the 24,337 handed over in 2022. It also hit its production goal with 57,232 vehicles built in 2023, topping the 54,000 guidance.
However, the pace slowed in Q4. Rivian’s CFO, Claire Mcdonough, explained the company expects “a more significant gap between production and deliveries in Q4.”
The gap is due to Amazon limiting new vehicle intake during the peak holiday season. According to registration data, Rivian was the fifth best-selling EV brand in the US last year, with a 4% share.
Rivian followed the industry trend, cutting prices on the base R1T and R1S earlier this month. The R1T now starts at $71,700. The EV maker has also introduced leasing, offering new options for shoppers.
Rivian Q4 2023 earnings preview
Price cuts have investors worried about growing losses. Rivian reported a net loss of $1.3 billion in the third quarter, with around a $30.5K loss per vehicle.
Although still a significant loss, that number is down from a loss of $139,277 per vehicle the year before.
| Q3 ’22 | Q4 ’22 | Q1 ’23 | Q2 ’23 | Q3 ’23 | |
| Rivian loss per vehicle | $139,277 | $124,162 | $67,329 | $32,594 | $30,500 |
Rivian delivered 13,972 vehicles in Q4, up significantly from the 8,054 handed over in the last three months of 2022. However, it wasn’t enough to beat Wall St estimates of over 14,000, sending Rivian’s stock into free fall.
Rivian shares are down nearly 25% since the beginning of 2024 as investors are starting to worry about the EV maker’s cash burn.
The EV maker ended the quarter with $9.1 billion in cash and equivalents. With its revolving line of credit, Rivian said it had $10.25 billion in liquidity. McDonough said the company expects R1 “to be contribution margin positive exiting this year for newly priced units.”
Barclays analyst Dan Levy downgraded Rivian last week, saying, “It appears that even great product and tech is not enough to avoid the EV winter.”
Levy explained that with demand in question and pressure on pricing, a “tougher path to gross margin profitability” is possible.
Rivian will unveil its more affordable R2 EV on March 7, which will be built at its new GA manufacturing plant, another capital-intensive project.
The EV maker teased the first look at the new R2. Rivian said deposits will start at $100. Rivian’s R2 is expected to go into production in 2026.
Check back after the market close on Thursday for a full breakdown of Rivian’s Q4 results and notes from the earnings call after.
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A fully-electric 10,000 ton container ship has begun service equipped with over 50,000 kWh in batteries
Chinese state-owned company COSCO Shipping has launched what it calls the “world’s largest” river-to-sea electric container ship. The Green Water 01 is a 10,000-ton+ fully electric vessel that sets a new benchmark in sustainability in the marine logistics industry.
China Ocean Shipping (Group) Company, or COSCO for short, is a state-owned multinational conglomerate headquartered in Shanghai specializing in marine transport. Not to be confused with Costco, COSCO Shipping was founded as a subsidiary in 2016 following an approved merger between COSCO and China Shipping.
The COSCO Group is the largest liner carrier in China, transporting hundreds of container vessels daily while also providing ships to Chinese automakers to help them export their electric vehicles to new markets overseas, including Europe.
To adapt to the times, COSCO has developed a massive, fully electric container ship, which has now officially begun service in China.
COSCO’s electric container ship begins service in China
According to a WeChat post from COSCO Shipping, which features reports from China’s CCTV, the company’s Green Water 01 electric container ship arrived safely and was berthed in the Port of Yangshan by the local maritime safety administration.
The Green Water 01 sails at a total length of 119.8 meters, a molded width of 23.6 meters, a molded depth of 9 meters, a design draft of 5.5 meters, and a maximum speed of 19.4 km/h (12 mph). COSCO Shipping says the Green Water 01 electric container ship presents multiple firsts for the marine industry, including total length, width, container capacity, deadweight tonnage (10,0000 tons), and battery capacity (50,000+ kWh).
Speaking of batteries, the electric container ship is powered by a large-capacity battery combining for over 50,000 kWh. However, COSCO says the number of battery modules can be configured depending on the length of the voyage at sea. For example, additional 20-foot battery boxes offering 1,600 kWh of electricity can be loaded onto the container for extra range.
This ship’s captain, Wang Jun, told CCTV that when the Green Water 01 is equipped with 24 battery boxes, the electric container ship can complete trips that consume 80,000 kWh of energy, equivalent to approximately 15 tons of fuel for a similar journey in a traditional container ship.
COSCO Shipping also shared that the new Green Water 01 can save 3,900 kg (8,600 pounds) of fuel for every 100 nautical miles traveled, cutting carbon dioxide emissions by 12.4 tons. Following the successful launch, the Green Water 01 has commenced weekly service between Shanghai and Nanjing.
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