Rivian revises upward 2023 production goal as electric carmaker releases 2Q results
NORMAL (25News Now) - Rivian plans to make more electric cars this year than originally planned at its factory in Normal as the company says it’s better able to ramp up production and reduce costs.
Rivian, which employs 7,500 employees in the Twin Cities, also said on Tuesday that it’s still on track to make a profit sometime next year.
In a letter to shareholders detailing second quarter results, Rivian said it expects to make 52,000 electric vehicles this year, up from the initial production goal of 50,000.
“Based on the progress of our production ramp, including the ramp of our in-house motor, along with our latest understanding of the supply chain, we are increasing our production guidance to 52,000,” the letter said.
For the second quarter, the company said it made 13,992 vehicles and delivered 12,640 vehicles, representing a production increase of almost 50% compared to the first three months of the year. For the first half of 2023, Rivian said it produced 23,387 vehicles, close to what it made during all of 2022.
For the first time, Rivian said the company experienced a “meaningful increase” in production of R1S sport utility vehicles, representing about 70% of all R1 vehicles produced in Normal. Rivian also makes R1T pickup trucks, but the company predicts its SUVs will be consumers’ vehicle of choice in the long run.
Rivian continues to experience large financial losses, but it expects that streak will end sometime in 2024.
Rivian said its net loss for the second quarter was almost $1.2 billion, from $1.7 billion for the same period a year ago.
“Increasing our production is the primary lever in our path to profitability,” Rivian said.
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