Rivian Automotive, Inc. (NASDAQ:RIVN) shares closed more than 7% lower on Friday following the company’s reported Q4 results and a weak outlook. Quarterly EPS came in at ($2.43), worse than the Street estimate of ($1.64). Revenue was $54 million, compared to the Street estimate of $61.18 million.

The disappointing 2022 outlook reflects largely predictable delays ramping up vehicle production amid challenges from its supply chain, but also steep cost pressures from input costs in the current inflationary environment, which it cannot offset with pricing following the backlash around its proposed price increase.

The company is now expecting 2022 production to be only 25,000 units, which would still require meaningful improvement in supply availability and production cadence.

Analysts at Deutsche Bank expect larger margin headwinds to persist well into next year, reflecting limited ability to offset higher input costs and higher investment expenses, and now forecast EBITDA losses of $4.98 billion/$3.48 billion for 2022 and 2023, respectively.