Rivian, an electric vehicle (EV) maker, has delivered positive news to investors by announcing that it has exceeded Q1 delivery estimates and is on track to meet its annual production forecast. The announcement comes as a boost to the EV sector, which has been struggling amid concerns over global chip shortages and supply chain disruptions.
According to Rivian, it delivered 7,946 vehicles in Q1, exceeding Street estimates of 7,752 as compiled by Bloomberg. The company also produced 9,395 vehicles, beating estimates of 8,752. Rivian currently produces two consumer vehicles, the R1T and R1S, as well as the EDV electric delivery van. The Q1 delivery beat is a positive development for Rivian, which suffered from component shortages and production issues at its sole plant in Normal, Illinois in 2021.
Rivian has set annual production guidance of 50,000 vehicles, which it believes it can achieve. The company produced nearly 25,000 vehicles in 2021, and earlier this year, a report suggested that Rivian had internally said it could make as many as 62,000 vehicles in 2022. However, a Rivian spokesperson said that figure was “taken out of context,” and 50,000 remained the official guidance. Rivian is reportedly offering team members severance packages if they do not wish to move closer to a Rivian facility, as it moves its manufacturing engineering team to its factory in Normal or corporate headquarters located in Irvine, California.
EV production
On the commercial front, Amazon, a Rivian investor, and client, recently revealed that it is using a fleet of 3,000 Rivian EDV vans for its deliveries. Amazon and Rivian had previously announced a deal for the delivery of 100,000 electric delivery trucks by the end of 2030, but a report suggested the two companies were in talks to end their exclusive agreement. The 3,000 Rivian EDV vans currently in use represent a small portion of the total number of delivery trucks that Amazon plans to use for its deliveries.
The Q1 delivery beat is another positive development for the EV sector, following Tesla’s delivery and production beat. China’s Li Auto, Nio, and XPeng have also reported strong delivery numbers for March. The announcement is a welcome boost for the EV sector, which has been struggling amid concerns over global chip shortages and supply chain disruptions. With consumers increasingly interested in electric vehicles, and governments around the world pushing for the adoption of cleaner forms of transportation, the EV sector is expected to continue to grow in the coming years. Rivian stated in its delivery report that it would release first-quarter financial results after the market close on May 9th, with the investor call starting at 5:00 p.m. ET.
