(CTN News) – Rivian Inc. (RIVN) continues to beat expectations even as it ramps up production in the midst of a critical year for the company.
It was reported that Rivian delivered 12,640 electric vehicles in the second quarter, exceeding expectations and putting the company on track to meet its production goal of 50K.
As a result of the news, Rivian’s stock surged by over 13%, surpassing a record high.
After producing 13,992 electric vehicles in the second quarter, Rivian’s stock is up
While Rivian produced 9,395 vehicles in the first quarter of this year, the company delivered 7,946 vehicles, which is off to a slow start, as it is retooling its EDV assembly line (in order to add its new in-house Enduro drive units) which will also slow down production.
Although Rivian has had a somewhat slow start to the year, it believes that by streamlining production, cutting costs as well as streamlining management, it will be able to improve production throughout the year despite the somewhat slow start.
So far, the move seems to be paying off for, as the company produced 13,992 electric vehicles at its Normal, Illinois, facility in the second quarter of 2023, an increase of 48% over the first quarter.
As a result of this, analysts did not expect such a high number of deliveries in the second quarter, expecting around 11,000 deliveries.
A Rivian spokesperson told Bloomberg it “believes that it is on track to meet its 50,000 annual production guidance” that it has been standing by throughout the whole year.
I would like to point out that stock was up over 8% in pre-market trading and is up another +15% as I write this article.
The news comes a day after Tesla also achieved an incredible feat, delivering over 466,00 electric vehicles in the second quarter of 2023, which is a record number.
Claire McDonough, Rivian’s CFO, recently said that she had begun to see some relief regarding the supply chain issues that have plagued the EV industry over the past several years, according to an interview conducted last month.
Lastly, she explained that Rivian’s Enduro production ramp is ahead of schedule, with the first saleable R1 series model equipped with Rivian’s in-house drive unit rolling off the production line in the second quarter of 2013.
In addition to the backlog of preorders, McDonough noted that the EV maker is seeing a “robust backlog that extends into 2024” as it shifts its production focus from the R1S electric SUV to meet the demand.