Electric-vehicle maker Rivian Automotive exceeded market expectations with its third-quarter deliveries, as it ramped up production to meet the strong demand for its pickup trucks and SUVs. The Irvine, California-based startup revealed that it is on track to produce 52,000 vehicles in 2023, a target it raised from 50,000 vehicles in August, as supply-chain bottlenecks eased.
This positive report from Rivian comes at a time when concerns are rising about softening demand for electric vehicles in the U.S., due to higher borrowing costs. This has led to some rivals, including Tesla, implementing price cuts and discounts. However, Rivian remains confident in its ability to deliver, as it reported delivering 15,564 vehicles in the third quarter, surpassing Visible Alpha’s estimate of 14,740 vehicles. This figure represents a 23% increase from the second quarter.
Despite these impressive numbers, Rivian’s shares were trading slightly lower. Analyst Chris Pierce from Needham & Co explained that some investors may have expected a larger beat on deliveries, comparing Rivian’s performance in the first half of the year.
Rivian’s production facility in Normal, Illinois, manufactured 16,304 vehicles in the third quarter, up from 13,992 in the previous quarter. To achieve its full-year target, Rivian needs to produce just over 12,300 vehicles in the current quarter.
As the industry faces challenges, Tesla has implemented price reductions to stimulate demand, causing average electric vehicle retail prices to decrease from nearly $70,000 a year ago to $53,376 in July 2023, according to Cox Automotive. In contrast, Rivian has focused on reducing costs and increasing in-house production of Enduro powertrains to reduce its reliance on suppliers.
Although there has been some slowdown, there are positive signs of growth in the U.S. electric vehicle industry, which has become one of the fastest-growing EV markets, according to market research firm Canalys Research.
Overall, Rivian’s strong delivery numbers and increased production capacity indicate its ability to meet the growing demand for electric pickup trucks and SUVs. As the competition heats up with price cuts from rivals, Rivian’s focus on cost reduction and in-house production positions the company well for continued success in the EV market.
(Reporting by Abhirup Roy in San Francisco and Zaheer Kachwala in Bengaluru; Editing by Arun Koyyur)
Credit: The Star : Tech Feed
