Salem Radio Network News Saturday, August 13, 2022

Business

EV maker Rivian’s deliveries nearly quadruple as it ramps up production

By Akash Sriram

(Reuters) -Rivian Automotive Inc delivered 4,467 vehicles in the second quarter, nearly four times more than the preceding quarter, as the electric-vehicle maker benefited from a ramp-up in production and strong demand.

The company also said on Wednesday it was on track to meet its annual production target of 25,000 units after output jumped 72% sequentially to 4,401 vehicles in the quarter.

The upbeat figures sent the company’s shares 9% higher, putting them on course to pare losses of about 35% for the year.

“The most important thing for the stock right now is to provide investors confidence on its 2022 forecast,” said Redburn analyst Charles Coldicott.

Hit by supply chain snarls that have hampered operations across the automotive industry, Rivian halved its 2022 production outlook in March.

The company has a factory in Normal, Illinois, where it makes the R1S sport utility vehicle, R1T pickup truck and a delivery van for investor and customer Amazon.com Inc. The online retail giant has a stake of about 18% in Rivian.

The Illinois factory has an annual capacity of 150,000 vehicles and Rivian has said it intends to increase that to 200,000 by 2023.

The company plans on opening its second plant near Atlanta in Georgia in 2025 as it expects demand for its vehicles to grow.

In the past few months, a broader move towards electric vehicles by customers as well as a jump in fuel prices due to the Russian invasion of Ukraine have fed demand for vehicles from companies such as Rivian.

(Reporting by Eva Mathews and Akash Sriram in Bengaluru; Editing by Aditya Soni)

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