By Ed Ludlow | Bloomberg
Rivian Automotive surpassed expectations by manufacturing more battery-electric vehicles in the last quarter. The company’s commitment to increasing production and overcoming supply chain challenges has resulted in a significant boost. As a result, Rivian’s shares saw a substantial increase in early trading on Monday.
Additionally, Rivian has reiterated its previous forecast of producing 50,000 electric vehicles (EVs) this year, following the production of just under 25,000 vehicles in 2022. Bloomberg previously reported that Rivian’s management team had discussed the possibility of reaching an output of 62,000 vehicles in 2023 with their employees.
Following this positive news, Rivian’s shares experienced a 15% surge, reaching $19.14 at 9:46 a.m. in New York. This comes after Tesla, a major competitor, also exceeded expectations in second-quarter deliveries. Despite a decline of 9.6% in its stock value this year, Rivian’s shares had plummeted by over 80% in 2022.
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In the second quarter, Rivian manufactured 13,992 vehicles and successfully delivered 12,640 to customers. Industry analysts had anticipated a production total of approximately 12,562, according to Bloomberg’s compiled estimates. This quarter’s figures, which include two passenger vehicles and a commercial plug-in van for Amazon.com, surpassed the first-quarter production of 9,395 vehicles.
Rivian is determined to secure its position as a leading competitor among several EV startups challenging Tesla’s market dominance. Despite a remarkable market debut in 2021, Rivian has faced difficulties with supply chain issues, reduced expectations, and a drastic decline in its market value.
To alleviate supply chain bottlenecks, Rivian has developed an in-house two-motor powertrain known as Enduro. This technology complements the existing four-motor design from Robert Bosch GmbH, which has struggled with lingering backlogs. By enhancing production of its R1S electric SUV, accounting for 70% of pre-orders, Rivian has managed to improve its supply chain situation.
Rivian plans to unveil its second-quarter financial results on August 8th.
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