Two major EV makers were moving in contrary directions on Tuesday morning amid volatility in the EV market, as news about Rivian’s delayed deliveries pushed down inventory costs, while Tesla beat expectations and saw a slight uptick in premarket trading.
Rivian reported Tuesday it had delivered 13,972 vehicles in the fourth quarter of 2023, falling short of the 14,000 forecasted by analysts, according to FactSet.
Rivian shares were down almost 10% Tuesday morning, putting the California-based EV maker on track for its biggest single-day stock drop since Nov. 9, when it also fell nearly 10%.
Meanwhile, Tesla announced it delivered a record 484,000 vehicles, ahead of market estimates of around 473,000, according to FactSet, ending the year achieving its goal of 1. 8 million deliveries.
Tesla was up 0. 6% in premarket trading Tuesday morning and peaked just before 11 a. m.
Wedbush analysts said in a report that Tesla’s figures were “a transparent win” for CEO Elon Musk and the company, as hitting its delivery target was “a major achievement in a volatile macro for electric vehicles. “
Tuesday wasn’t good news for Tesla either: Chinese EV maker BYD also announced that it had surpassed Tesla in terms of deliveries for the first time in the fourth quarter of 2023, even though Tesla still outperformed BYD for the year.
The figures come amid concerns about declining demand in the EV sector, due in part to high interest rates impacting EV affordability. The growing festival in the market, especially of Tesla’s new Cybertruck, and the ongoing price war with Chinese EV brands have created a challenge. environment for electric vehicle automakers. Changes to EV tax credit regulations also went into effect on Jan. 1, making many vehicles, adding the Cybertruck, ineligible for tax credits, potentially adding more stringent situations to EV affordability. In October, Rivian shares fell following the announcement of an earlier-than-expected bond factor, prompting considerations about the company’s monetary health. But Chief Executive Officer RJ Scaringe rejected those considerations, telling Reuters the factor was aimed at bolstering its balance sheet before borrowing becomes more expensive.
Tesla’s press release on Tuesday revealed figures specifying deliveries and production of its new Cybertruck, making it difficult to know how the new vehicle has fared since its debut in November amid recent reports indicating that the production status is complicated.
Rivian will report its fourth-quarter and full-year monetary effects on Feb. 21 after markets close, and Tesla will report its monetary effects on Jan. 24.