What happened
The S&P 500 is off to a bearish start this week, and shares of EV manufacturer Rivian (RIVN -3.62%) are driving in a similar direction. The company announced first-quarter 2023 production figures this morning, and the update is doing little to charge up investors' enthusiasm.
As of 11:46 a.m. ET, shares of Rivian have fallen 3.5%, a recovery from their earlier slide of 5.5%.
So what
With Q1 2023 in the rearview, Rivian reported that it produced 9,395 vehicles and delivered 7,946 vehicles during the period. Compared to Q1 2022, the recently completed quarter represents a 268% increase in the number of vehicles produced and a 548% increase in the number of vehicles delivered.
Besides the production and delivery updates, Rivian reported both that both numbers met expectations and that the company remains on track to achieve its 2023 production target of 50,000 vehicles.
Since the company appears to be headed in the right direction with regards to vehicle production, it may seem counterintuitive to see the stock driving lower today. In all likelihood, investors are expressing disappointment that Rivian didn't update its 2023 guidance to reflect the 62,000-vehicle production target that management allegedly discussed in internal communications in early March.
Now what
Many investors have recognized Rivian as an EV stock that has the potential to soar much as Tesla did years ago. But with the rubber hitting the road, the company's ability to grow by leaps and bounds doesn't seem to be as sure a thing as investors earlier surmised.
It's premature to conclude that Rivian won't ramp up production and become an increasingly familiar sight on America's roadways. Instead, potential investors must remember that the road to growth may not be as smoothly paved as they thought.
