Thursday☕️

22 Feb 2024 — 5 min read

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Rivian Layoffs:

Rivian has announced a 10% reduction in its workforce due to concerns over slowing electric vehicle (EV) sales. This decision was revealed alongside their fourth quarter earnings report, which also forecasted no increase in vehicle production for the year compared to 2023. Last year, Rivian produced 57,232 vehicles and delivered 50,122 of these to customers.
The electric vehicle manufacturer, based in Irvine, California, has previously conducted layoffs, reducing its workforce by 6% in July 2022 and again in May 2023. The latest layoffs are expected to impact over a thousand of Rivian's 16,700 employees, with the cuts primarily affecting salaried and some hourly non-manufacturing positions. The company plans to maintain its production target at around 57,000 vehicles for 2024, attributing the steady forecast to the current economic and geopolitical environment.
Rivian is also preparing to introduce its second-generation R2 vehicle, a compact SUV aimed at being more affordable, next month. Currently, Rivian manufactures the R1T truck, R1S SUV, and an electric delivery van (EDV). Despite an initial surge in EV sales, the growth rate has begun to slow, prompting major automakers like Ford, GM, and Renault to reduce their EV investments. This downturn has also led rental car giant Hertz to sell off a substantial portion of its EV fleet.

Nvidia Earnings:

Nvidia recently reported its quarterly earnings, significantly surpassing Wall Street's expectations. The company recorded $22.1 billion in sales for the quarter, marking a 265% increase from the same period the previous year, exceeding the average analyst estimates of $20.4 billion. Net income for the quarter was $12.3 billion, resulting in a year-over-year profit growth of 769%, with adjusted earnings per share at $5.16, well above the expected $4.59.
These results highlight Nvidia's consistent performance, as it has not missed consensus analyst earnings estimates since the quarter ending October 2022 and has maintained its revenue streak since before 2020. Nvidia's focus on AI has been a key driver of its growth, with its technology being pivotal in various applications from gaming and professional visualization to data centers and automotive technologies.
The company's significant advancements in AI have solidified its position as a leader in this rapidly evolving field. Moreover, Nvidia's market capitalization has seen a dramatic rise, reflecting the company's expansion and its influential role across multiple industries. This increase in market value from just over $300 billion to over $1.6 trillion within 15 months showcases the market's confidence in Nvidia's growth trajectory and its AI-focused innovations.

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