Rivian (RIVN) – Get Rivian Automotive, Inc. Class A Report got scared but the electric vehicle maker made up for it well.
The young manufacturer of electric SUVs and pickups has just cleared some of the many doubts hanging over its short-term future.
The Irvine, Calif.-based company confirmed its production target of 25,000 vehicles in 2022, despite supply chain disruptions, chip shortages and soaring raw material prices. These problems have made it difficult to increase production rates.
“Based on our latest understanding of the supply chain environment, we reaffirm the annual guidance provided during our fourth quarter and fiscal year 2021 earnings call of 25,000 total units of production,” the company said in a letter to its shareholders.
As of May 9, the carmaker has produced ~5,000 vehicles.
“Supply chain continues to be the bottleneck of our production. This challenge has continued across a small handful of technical components such as semiconductors, as well as a few non-semiconductor components,” Rivian explained.
An Affordable Midsize Electric SUV
“Since March 31, 2022, we have been forced to stop production for longer periods than anticipated, resulting in approximately a quarter of the planned production time being lost due to supplier constraints.”
But “encouragingly, as we demonstrate our production ramp, our suppliers are leaning in to help ensure we can achieve our targets,” the company added.
Rivian also said it ended the first quarter with $17 billion in cash, which seems sufficient to launch an affordable midsize SUV, R2, in a new plant.
“We have optimized our product roadmap and associated operating expenses to ensure we have a path to launch R2 in Georgia in 2025 with our current cash on hand,” the company explained.
Rivian signed an agreement with authorities in the U.S. state of Georgia in early May. This agreement will enable the carmaker to accelerate the construction of a $5 billion factory east of Atlanta. That’ll be the second…
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