Despite the fact that analysts had predicted Rivian would aim to produce 60,000–65,000 vehicles this year, the company’s shares fell by 10% immediately upon the presentation of the company’s fourth-quarter earnings. But, according to Bloomberg, corporate leaders assured staff members that 62,000 EVs would be possible to produce this year.
On its Q4 2022 conference call, Rivian stated that the unit production prediction was based on the assumption that supply-chain challenges would persist into 2023 and constrain production.
As the quarter progresses, the automaker indicated that it will ramp up manufacturing of the R1T and R1S at its facilities in Normal, Illinois. The single plant for Rivian can build up to 150,000 vehicles annually.
However, to produce its smaller, more cost-effective R2 series of vehicles, the business intends to establish a second factory close to Atlanta, Georgia. Which was Initially scheduled for 2025, but production is now anticipated to begin in 2026.
Rivian shares rose as much as 11%, closing at $16.92 on March 3. Nevertheless, the stock is still trading below where it did on March 1, before the business provided its 2023 production projection at $17.64.
Meanwhile, investors are concerned about the weakening demand for EVs with interest rates continuing to rise and the fear of a looming recession forces consumers to look for deals or even hold off on purchases.