Rivian Automotive (RIVN) Weak 2024 Projections Case
$RIVN stockholder filed a claim vs. Rivian for overstating product demand, which impacted the order bank and 2024 targets.
On February 22, 2024, news about the financial results caused $RIVN to fall 25%, losing $3.8B+ in shareholder value.
Affected $RIVN investors may join the claim to be notified about potential recovery.
On February 21, 2024, Rivian released its financial results for the Q4 and full year 2023.
Rivian forecasted producing 57,000 vehicles in 2024, below the anticipated 80,000.
Rivian also forecasted a $2.7B adjusted EBITDA loss for 2024, exceeding analysts' $2.59B estimate. It also announced plans to cut 10% of salaried staff.
During the earnings call, Rivian's CEO mentioned that high interest rates had reduced demand.
He also noted order cancellations due to factors like delivery timing and customer readiness.
On this news, $RIVN fell 25.6% on February 22, 2024.
Rivian overstated product demand and underestimated the impact of negative macroeconomic factors.
Reduced demand and increased cancellations significantly impacted Rivian's order bank, 2024 earnings and production targets.
Considering all the representations, investors have reason to suspect that Rivian overstated product demand, which impacted the order bank and 2024 targets.
One of RIVN's investors has already filed a claim vs. Rivian in the C.D. California court.