Rivian (RIVN) – Get Rivian Automotive Inc. Report Breathing, let it be known.
The young electric car maker has finally had a breakthrough that will reassure investors.
The group has grappled with the disruption to supply chains caused by the pandemic and a resurgence of covid-19 in China, chip shortages and soaring prices for raw materials such as nickel, cobalt and palladium. In fact, Rivian did increase productivity in the last month.
The company announced on July 6 that in the second quarter ended June 30, its Normal, Illinois, manufacturing plant produced 4,401 vehicles and delivered 4,467 vehicles during the same period. As a result, the group managed to increase production by 72 units, 4% from one quarter to the next. Rivian produced 2,553 vehicles in the first quarter and delivered 1,227. The company did not provide details on each vehicle. Rivian was founded in 2009 and will go public in 2021. The company produces three electric vehicles: the R1T pickup, the R1S SUV, and the RCV commercial van.
Production target set for 2022
“These numbers remain in line with the company’s expectations, and it believes it is on track to achieve the 25,000-year production guidance previously provided,” Rivian said in a press release.
Confirmation of this target means Rivian will have to ramp up productivity in the second half of the year. The automaker has produced a total of 6,954 vehicles since January 1. To reach its goal of producing 25,000 cars in 2022, the company must assemble 18,046 units in the third and fourth quarters, or 9,023 units per quarter.
That doesn’t seem to scare CEO RJ Scaringe.
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“Supply chain and production are accelerating!” Scaringe tweeted on July 6. “We just announced that we produced 4,401 vehicles in the second quarter, bringing our cumulative total since production to 7,969 – putting us on track Achieving year-end goals. Thanks to our team and suppliers.”
Rivian’s optimism is also evidence that the company has managed to increase production even as that of its rivals has fallen.Tesla (TSLA) – Get Tesla Inc reportFor example, it was announced that 254,695 electric vehicles were delivered in the second quarter, down 17.85% from the first quarter. In the last quarter, Elon Musk Group delivered 310,048 vehicles.
Sober Group (LCID) – Get Lucid Group Inc. ReportAnother Rivian competitor lowered its annual production target from 12,000 to 14,000, compared with the company’s original plan to produce 20,000, mainly because of global supply chain and logistical challenges.
Rivian shares soar
Morgan Stanley analyst Adam Jonas is convinced the group will have to look for a fresh capital injection in 2023. Jonas estimates that $2 billion in new equity will be raised in fiscal 2023 and, as we wrote on May 7, 2024.
The Lucid Air Sedan produced by Lucid is available in various configurations including Lucid Air Dream Edition, Lucid Air Pure, Lucid Air Grand Touring.
As for Rivian, the company said in its first-quarter earnings report that it had $17 billion in cash as of March 31. It added that this would be enough to cover its expenses by launching its next-generation model, a low-cost car called the R2. , plans to build a new plant in Georgia in 2025.
At the time, the group also said it had received 90,000 reservations for its R1T and R1S models. Rivian makes pickups/trucks and SUVs with incredibly innovative features, and the question is never demand, but whether the company can deliver what it promises to customers.
Those doubts have dogged Rivian’s shares for months, which have fallen more than 74% since January. But at the time of writing, the good production news announced on July 6 sent the stock up more than 11% to $30.06.