Deliveries from EV manufacturer Rivian nearly double as manufacturing ramps up
After output increased by 72 percent sequentially to 4,401 vehicles in the quarter, the company added on Wednesday that it was on course to fulfil its yearly production goal of 25,000 units.
Wednesday, July 6, 2022 | Chimniii Desk
In the second quarter, Rivian Automotive Inc. delivered 4,467 automobiles, nearly four times as many as the quarter before, as the manufacturer of electric vehicles profited from an increase in production and robust demand. The business added on Wednesday that it was on track to reach its 25,000 unit annual production goal after output increased by 72 percent sequentially to 4,401 vehicles in the third quarter.
The positive news drove the company's shares up 9 percent, putting them on track to reverse their year-over-year loss of around 35%.
The stock currently needs to give investors confidence in its prediction for 2022, according to Redburn analyst Charles Coldicott. Rivian cut in half its 2022 production forecast in March due to supply chain bottlenecks that have impacted business operations throughout the automobile industry.
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The business has a manufacturing facility in Normal, Illinois, where it produces the delivery van for investor and customer Amazon.com Inc., as well as the R1S sport utility vehicle and R1T pickup truck. The dominant online retailer owns around 18% of Rivian. Rivian has stated that it plans to grow that capacity to 200,000 automobiles by 2023 from the current annual capacity of 150,000 vehicles at the Illinois factory.
As it anticipates increasing demand for its automobiles, the business intends to establish its second Georgia plant close to Atlanta in 2025.
The demand for automobiles from companies like Rivian has increased over the past few months as a result of both a wider shift toward electric vehicles among consumers and a rise in gasoline prices brought on by Russia's invasion of Ukraine.
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