Shares in Rivian Automotive Inc. fell more than 15% in late trading today after the electric car maker announced job cuts, posted a larger-than-expected quarterly loss and forecasted flat production numbers in the year ahead amid high interest rates and other economic pressures.

For the quarter that ended Dec. 31, Rivian reported an adjusted loss per share of $1.58, down from a loss of $1.73 per share in the same quarter of last year, on revenue of $1.135 billion, up 71% year-over-year. The adjusted earnings figure fell short of the $1.35 per share loss expected by analysts, while revenue was ahead of an expected $1.28 billion.

Rivian reported a net loss of $1.521 billion in the quarter, better than the $1.723 billion it burned through in the fourth quarter of 2023. At the same time, operating expenses grew to $975 million, up from $795 million. The company delivered 13,972 vehicles in the quarter.

For the full year 2023, Rivian reported a net loss of $5.423 billion, down from $6.752 billion in 2022. Revenue in 2023 came in at $4.434 billion off the back of 50,122 total vehicle deliveries. Rivian ended its year with $9.368 billion in cash, cash equivalents and short-term investments on hand and access to $10.468 billion in liquidity — which means that if it maintains its current run rate, it will run out of money — excluding new investments, within the next two years.

Rivian does appear to know that it’s burning money at an unsustainable rate and that it needs to take action, as the company also announced today that it’s laying off 10% of its workforce. That’s about 1,670 employees based on its reported 16,700 employees. The spokesperson said the layoffs would primarily affect the company’s salaried employees and a limited number of nonmanufacturing workers.

In an email to employees, Rivian founder and Chief Executive Officer R.J. Scaringe reportedly said that the company “is facing a challenging macroeconomic environment — including historically high interest rates and geopolitical uncertainty — and we need to make purposeful changes now to ensure our promising future.” He added that Rivian “must strategically prioritize our growth areas of the business, including the launch of Peregrine and R2 as well as investing in our go-to-market capabilities.” The R2 is Rivian’s next upcoming model and Peregrine is the company’s next electronic control unit architecture.

For 2024, Rivian expects to make 57,000 electric vehicles, fewer than the 57,232 it produced in 2023. Investors were expecting a number of about 66,000 to 68,000. “Economic and geopolitical uncertainties and pressures, most notably the impact of historically high interest rates, have informed our expectations for 2024,” the company said in a letter to shareholders.

Perhaps the only glimmer of hope for Rivian is that it only expects to post a $2.7 billion loss in 2024, which, if it can deliver, may give it a chance to last long enough to be profitable one day.

Photo: Rivian