Rivian warns of production halving

Rivian warns of production halving

Things are against Rivian again. The American EV builder warns that production before 2022 could be half of what was previously forecast, mainly due to the availability of parts.

Starting a car factory in a period of (chip) shortages and rising prices is not easy. Rivian experiences this firsthand. 2022 should be the year production finally reaches serious levels, after the company delivered its first (about) 1,000 cars at the end of 2021. Reuters now reports that Rivian has warned its shareholders that production by 2022 could be half the 50,000 units mentioned in an earlier forecast. The reason: ‘supply chain issues’, or hassle around the delivery of parts.

The year 2021 did not end on a positive note, either. Rivian recorded a loss of EUR 2.24 billion in the fourth quarter. The share price is currently in a small nosedive, losing more than 14 percent in a week. That downward trend is the last piece of a similar trend, which has been going on since late 2021. The recent price increases of the R1T and R1S do not contribute to the stability of the price.

Despite everything, there is still hope for Rivian. The R1T pickup has been well received, plus the company has Amazon backing. That giant owns 20 percent of the shares and had Rivian design a special delivery van, of which at least 100,000 will be purchased. If they can be produced, that is.

– Thanks for information from Autoweek.nl

Recent Articles

Related Stories