Rivian has released its Q4 2022 earnings today and confirmed that it lost over $2.4 billion during the last quarter as it still faces significant challenges in ramping up production.

The automaker has revised its production target for 2022 to 25,000 and it plans to lose money on those.

Investors are focused on Rivian’s production ramp-up.

There was some good and bad news in the Q4 2021 shareholders letter on that front.

Rivian confirmed that it produced only 1,410 vehicles so far in 2022, which is barely more than they did in 2021.

But it included a production shutdown to upgrade the production lines and the automaker now claims that it doubled its exit rate over the last two weeks:

“We are focused on our production ramp and are encouraged by the team’s progress. This is reflected in strong recent week-over-week production rate growth, wherein our output has been constrained primarily by supplier constraints. The critical production areas of the plant, including battery module, general assembly, skateboard assembly, body shop, and paint shop, continue to each set record weekly production levels for Rivian. During the two trailing weeks prior to March 8, we averaged a weekly production rate that was approximately two times the exit rate of Q4 2021. As of March 8, we have produced 1,410 vehicles in 2022 and 2,425 vehicles since the start of production.”

The automaker claims that it would be ready to produce as many as 25,000 vehicles between its 3 models, R1T (pickup), R1S (SUV), and EDV (delivery van), but that supply chain issues plaguing the industry is limiting their guidance to 25,000 units this year.

Investors are not liking this news at all and are selling off in after hour trading where Rivian’s stock is now down by as much as 13%.

The company’s valuation is now trading at a low of $33 billion after being valued as high as $150 billion after its public offering in November.

The silver lining is that the company is still sitting on $18 billion in cash as of the end of last quarter and pre-orders remain strong at 83,000 despite the price debacle earlier this month.

Here’s Rivian’s full shareholder’s letter for Q4 2021:

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