Rivian on Track to Meet 50,000 Production Goal Despite Lower Q1 Numbers, Faces Supply Chain Challenges

On Monday, electric vehicle (EV) manufacturer Rivian disclosed that it manufactured 9,395 vehicles at its Normal, Illinois plant during the first quarter, which was lower than the previous period, but is still in line with its target of producing 50,000 vehicles for the year. In Q1, Rivian delivered 7,946 vehicles, just below the forecast of approximately 8,000 by analysts polled by FactSet. 

The announcement of the Q1 results caused a 4.3% decline in the company’s shares. Although these Q1 numbers were higher than the same quarter last year when Rivian was facing supply chain constraints while ramping up production, they were still lower than its Q4 results. Rivian manufactured 10,020 EVs in Q4 and delivered 8,504 in the same period. Since the start of production of its R1T truck in late 2021, Rivian has been struggling with supply chain problems, particularly with semiconductors. These issues persisted in 2022, forcing the company to reduce its production guidance from 50,000 to 25,000 vehicles for 2022.

 Even with the lower guidance, Rivian did not quite achieve its target, producing 24,337 vehicles and delivering 20,332 vehicles in 2022. After releasing its Q1 earnings report, Rivian will hold an audio webcast on May 9 at 2 pm PT