Rivian tumbles on lower 2023 production forecast, PT cuts

RBC Bearings

01/03/2023 15:11

(Updates)
    ** Shares of Rivian Automotive Inc  RIVN.O  drops 14.2% to
$16.57 in early trade
    ** The automaker forecast 2023 production well below
analysts' estimates as it grapples with supply-chain bottleneck
    ** RIVN said it aims to produce 50,000 cars this year,
compared with analysts' estimate of 67,170 units - Visible Alpha
    ** At least 7 brokerages cut their price target on the stock
with RBC's being the steepest
    ** RBC Capital Markets says the 2023 outlook disappoints on
a lower production due to continued semi constraints; cuts PT to
$28 from $50
    ** Co also announced a recall of more than 12,700 vehicles
due to an issue with a sensor in the front passenger seat-belt
system
    ** Revenue for Q4 totaled $663 mln, versus analysts'
estimate of $742.4 mln - Refinitiv data
    ** Through last close, RIVN stock up ~5% this year after
plunging ~82% in 2022

 (Reporting by Samrhitha Arunasalam in Bengaluru)
 ((Samrhitha.A@thomsonreuters.com))