American electric vehicle maker Rivian announced on Monday that it has outperformed expectations in terms of production and deliveries during the third quarter of this year. The firm delivered 15,564 of its 16,304 automobiles from its facility in Normal, Illinois.
Rivian is now on track to outperform its projected yearly output levels due to this success. The firm's shares originally decreased by 3%, but they eventually recovered and ended up at $24.13, according to TechCrunch.
In line with it's lofty goals, Rivian aims to manufacture 52,000 vehicles in 2023. Up until this point, the company has produced about 39,691 automobiles. The R1T truck and R1S SUV are two of the four vehicles in Rivian's product portfolio, which also includes two iterations of its commercial van.
The electric vehicle maker produced 13,992 vehicles and delivered 12,640 in the third quarter, up 23% over the previous quarter. Rivian's third-quarter results are twice as high as last year's.
Focusing on Productivity
Rivian had encountered substantial supply chain difficulties during that period, which had limited manufacturing. But in the early part of this year, the bottlenecks began to loosen, as Rivian has been concentrating on boosting productivity at its manufacturing plant in Normal, Illinois. The EV business has also started creating its own driving unit, known as the Enduro, to save costs and lessen its dependency on suppliers.
According to Rivian's CFO, Claire McDonough, the company's supply chain started to improve in June, which helped to drive up output. She also emphasized the company's decision to concentrate on the R1S model to deal with a sizable backlog of preorders that extend into 2024.
Rivian reduced its personnel by 6% in February and issued $1.3 billion in convertible notes in March to decrease costs and strengthen its finances. Additionally, the R2 vehicle platform launch date was delayed to 2026 from 2025. The EV company reported to have $10.2 billion in cash on June 30, according to a report from CNBC.
The electric vehicle manufacturer will release its third-quarter earnings on November 7 after US markets close.
Tesla Misses Its DeliveryTarget
Rivian made its announcement following the news of Tesla's third quarter results missed expectations. Electrek reported that in the Q3 of 2023, Tesla delivered 435,000 vehicles, less than the 455,000-unit average expectation, despite a warning issued by CEO Elon Musk.
Tesla's shares fell 4% in pre-market trade as it blamed anticipated plant downtime for lower delivery estimates. Despite this, Tesla's third-quarter deliveries of 435,000 were a record showcasing the continued demand for electric cars.
The EV manufacturer, headquartered in Austin, Texas, has set a target to distribute a total of 1.8 million vehicles in 2023, and the statement released today reaffirms this objective.
