Finally Rivian increases the production of its electric cars, and aims at 25,000 units per year

The automotive industry is going through difficult times, such as supply problems or high manufacturing costs that have led most companies to raise the final price of their models. Rivian, meanwhile, is a company that has been in serious trouble in recent months. However, their aspirations remain high and they hope to meet its forecast to manufacture more than 25,000 units of its electric models throughout the present 2022.

After all these inconveniences, many brands continue to put all their effort into achieving adequate production figures. One of them is Rivian, because in a recent announcement by its board announced that the production of electric vehicles doubled in the second quarterwith respect to what was achieved in the first period of the year, and they are already on their way to reaching their manufacturing objective established for the end of this year.

Originally, Rivian estimated an initial production for the year 2022 of around 40,000 vehicles. This vision had to diminish considerably when the first supply and cost problems began, which caused that goal to be reduced to the 25,000 units that they now have as a target. However, even this figure feels far from being able to be fulfilled today after observing the production achieved so far.

During the first quarter, the American electric car firm was able to manufacture a total of 2,553 vehicles. Throughout the second quarter, this figure has almost doubled and 4,401 units have been completed. The sum of both quarters results in a total of 6,954 cars. With another two quarters to go until the end of the year, it feels remarkably difficult that they can make an additional 17,000 or so units. However, RJ Scaringe, the firm’s CEO, believes plans are going according to plan despite supply and do you think it is possible to achieve the goal by 2022.

Rivian R1T.
Rivian R1T.

This good news has made Rivian shares rise 11 percent in the last days. This rise in the company’s price would be fully supported by the fact that they finally reached the estimated production for this year, something that would serve to rebuild the somewhat diluted confidence of its shareholders.

These 25,000 units stipulated for 2022 is not a figure remotely close to what the Normal plant in Illinois can manufacture. Its production capacity is estimated to be between 150,000 and 200,000 units per year, a capacity that they aspire to reach by 2023. In addition to this, Rivian is in the process of building its new enormous plant located in the state of Georgia , which is five times the size of its current factory. With both fully operational, the American firm will be able to reach production levels above 500,000 units per year.

In recent months, it has been possible to see a greater interest on the part of the firm in promoting the manufacture of the Rivian R1T, its electric pick-up, while the SUV body model, the R1S, has had a more limited print run. This model is expected to make significant progress in the coming months, being able to match the level of production of its brother in the range a few months later.

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