After setting production target of 50,000 EVs, Rivian ups the ante internally

EV manufacturer Rivian (RIVN) released its fourth quarter results this week, and although it has proclaimed that it aims to produce 50,000 vehicles this year, it can believe it can do better. The company would raise the bar with a new goal of in-house electric vehicle production.

Rivian raises 2023 EV production target internally

After releasing Q4 and year 2022 Earnings Results Tuesday, Rivian ($RIVN) the stock hit a new 52-week low this week, with disappointments stemming from a lack of production forecasts.

On the company’s subsequent earnings call, Claire McDonough, Rivian’s chief financial officer, said: “We are targeting 50,000 vehicles produced this year”, which would be more than double the 24,337 produced in 2022.

Wall Street was looking for Rivian to announce an EV production forecast in the 60,000 to 65,000 range. However, as we said in our earnings coverage, the company has stuck to a modest target as it took into account the risks and uncertainties of the supply chain.

According to a new report Since Bloomberg, Rivian told its employees that the young electric vehicle manufacturer could produce more vehicles this year. Sources familiar with the matter said Bloomberg Rivian executives said production of 62,000 electric vehicles is possible this year at a strategy meeting on Friday.

The internal number lines up directly with what Wall Street expected them to announce during earnings earlier this week. Meanwhile, a Rivian spokeswoman said Bloomberg“We already gave our production forecast on Tuesday during our earnings call,” and that the new figure has been discussed internally.

Rivian says he will speed up his second shift to increase production of the R1T And R1S at its Normal, Illinois manufacturing facility as the quarter progressed.

Electrek’s Grasp

Did Rivian retain its profit forecasts? It might be. It’s one of the oldest tricks in the book for beating expectations.

At the same time, Rivian had to know what Wall Street was looking for, and if so, why would they let the stock price crash?

While the forecast of 50,000 isn’t terrible, to start with, 62,000 is more in line with investor expectations. If so, Rivian will build about 1,000 more vehicles per month than originally suggested.

FTC: We use revenue-generating automatic affiliate links. More.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top