Rivian May Produce 62,000 Vehicles In 2023, 24% Increase Than Expected Production

U.S. electric carmaker Rivian Automotive told employees it could produce 62,000 electric vehicles this year, above the production target it announced to investors last week, according to people familiar with the matter.

As soon as the news came out, Rivian's stock price rose as high as $17.48, an increase of 11%. As of 3:25 p.m. New York time on March 3, Rivian shares were trading at $16.84.

In an all-hands meeting on March 3, Rivian executives said Rivian’s 2023 production plan was to produce as many as 62,000 vehicles, compared with the average analyst estimate of 62 million vehicles before Rivian’s initial production plan was revealed, according to people familiar with the matter., 797 vehicles are basically the same.

But after analysts revealed estimates, Rivian said on February 28 that it expects to produce 50,000 electric vehicles in 2023. Rivian’s shares then suffered their biggest drop in nine months and are still below where they were before the company disclosed its production targets.

A spokesperson for Rivian declined to discuss the latest production target reported by foreign media, saying that the target was announced at an internal meeting and reiterated the production target (50,000 vehicles) announced by the company on the 2022 earnings conference call.

A number of electric vehicle startups are catching up with market leader Tesla, and Rivian is seen as the frontrunner. In 2021, Rivian went public in the United States and became the sixth largest public company in the history of the United States.

However, due to the shortage of parts and other supply problems, the company faced great challenges in increasing production, and finally failed to achieve an annual output of 2.5 in 2022. million electric vehicles.

Rivian currently has three electric models, including two for consumers — the R1T electric pickup and the R1S electric SUV. Rivian also makes electric delivery vans for Amazon, one of Rivian's largest customers and one of its largest investors.