Rivian, a California-based electric vehicle manufacturer, announced that it will produce 1,015 vehicles in 2021, which is in line with projections that the firm lowered last month. According to a press statement issued Monday, Rivian will deliver 920 automobiles by the close of 2021. Rivian’s stock has dropped as a result of the production and delivery data, as well as a WSJ, report that the company’s COO resigned last month. Rivian’s stock sank 5.6 percent to $81.44, and it fell another 3.3 percent in after-hours trade.
According to a letter to shareholders sent out in December, Rivian has more than 71,000 “pre-orders” (refundable reservations) for their R1T pickup vehicles. Rivian had planned to produce 1,200 vehicles before the close of the year. Last month, company management, including CEO RJ Scaringe, lowered their estimates, predicting that the company will fall short by a few hundred vehicles due to supply chain concerns and battery production challenges.
Scaringe referenced production as a complicated orchestra twice during the company’s earnings call in December. “As I previously stated, scaling up a production system such as this is a very difficult orchestra,” Scaringe remarked. “So you have hundreds of vendors supplying thousands of parts, thousands of robots running to prescribe movements within the manufacturing facility, and thousands of team people assembling and operating to put the vehicles together.”
Despite the lower objective, Scaringe stated on the conference call that the firm is “essentially ramping as intended.” In December, he added, “The battery constraint is indeed an artifact of merely bringing up an extremely automated line.” “As I have stated, that does not pose any long-term issues for us. We’re about to start a second line, which will put battery module production considerably ahead of the other areas of the factory in terms of capacity.”
Rivian is racing to ramp up manufacturing, while GM and Ford prepare to introduce their electric pickup trucks. In response to customer demand, Ford said on January 4 that it will nearly double the production capacity of the planned electric F-150 Lightning pickup truck to 150,000 vehicles per year by mid-2023. The first F-150 Lightning pickup trucks are scheduled to arrive in spring 2022.
It will also open its second factory in Georgia, a $5 billion facility. Rivian aims to create up to 400,000 automobiles annually when production begins in 2024, while some industry experts believe this is premature growth. Rivian Chief Operating Officer (COO) Rod Copes retired in the month of December, the business revealed, according to The Wall Street Journal. His retirement had been scheduled for months, and his responsibilities have been taken on by Rivian’s leadership team, according to a business representative.
Rivian went public in November with a market capitalization of roughly $100 billion in a blockbuster IPO. The company’s IPO raised $11.9 billion from the sale of 153 million shares, making it the sixth-largest ever on a US market.