Good news for Rivian. After spending a few tough months in terms of prices and results, RJ Scaringe’s company faces the immediate future with some optimism. Production and deliveries grow in the first quarter, which may encourage investors and buyers. During these first months of the year, the pace of manufacturing has grown to accumulate more than 1,000 units per month. In the second quarter the figures are expected to be even better.
The end of last year was not very good for Rivian. After failing to meet self-imposed goals, many began to see signs of weakness in a company that promised a lot. The result has been a loss of confidence in the markets, where the company’s valuation has fallen considerably. Despite these bad omens, Rivian has continued to work at a good pace, improving production and increasing the number of units produced per turn.
Although the loss in the first quarter of 2022 has been close to 1.6 billion dollars, a serious blow, RJ Scaringe’s company blames much of the problem on low production volume during the first three months. It must be remembered that the production of the Rivian R1T started on September 15. The initial objective was to reach 1,000 units delivered before the end of the year, and by just a few dozen the objective was not achieved.
However, the beginning of the year has been much better in terms of production. During the first three months Rivian has manufactured a total of 2,553 vehicles, having delivered a total of 1,227. On May 9, the accumulated production reached the round figure of 5,000 units, which makes it clear that the assembly line has increased the pace. Everything indicates that the second quarter will be better, expecting to produce about 3,000 units per month.
Rivian remains confident in its manufacturing target for this year, set at 25,000 units for the entire course. A quick calculation tells us that this means an approximate production of 2,000 units per month. If you want to meet the figure, you will need to increase the pace, because failing to meet the objectives once again would be a severe setback for a company that in recent months has not been well seen among investors. Above all, Rivian has to meet deliveries of the EDV, Amazon’s van, of which 10,000 units are expected by the end of this year..
With this tension on the production lines, customers show their attraction to Rivian. Although production is still out of line, unit bookings continue to grow. The company ensures that it has more than 90,000 orders as of May 9, which represents an increase of more than 8% compared to the previous month. The demand is still good, even after the price increase, and that is what encourages Rivian to keep pushing for the coming months.