Rivian continues to record declining production over Q2

The US electric car manufacturer Rivian has kept deliveries constant in the second quarter of the year, but production has fallen sharply compared to the first three months of the year. Rivian is nevertheless sticking to its production forecast of 57,000 vehicles for 2024 as a whole.

Over the second quarter of 20204, Rivian produced 9,612 vehicles and delivered 13,790 vehicles. While deliveries increased by 202 units or 1.5 per cent compared to the first quarter, production output fell by 4,368 vehicles or 45.4 per cent. Rivian thus reduced its production volume for the second quarter in a row. In the first quarter, the US company already produced 3,561 fewer vehicles than in the fourth quarter of 2023. At that time, however, Rivian also recorded a particularly strong result with 17,541 cars produced.

The manufacturer has now produced 23,592 units for the first half of the year. This means it is still just under 33,500 cars short of the production target for 2024 mentioned at the beginning. Rivian is therefore clearly hoping for a strong second half of the year. The electric cars were manufactured at the company’s only plant to date in Normal, Illinois, which is to be expanded to improve production capacities. In return, Rivian has put the construction of a planned second plant in Georgia on hold for the time being.

In the emphatically brief press release, Rivian once again states that the production and delivery results are “in line with its own expectations”. Incidentally, the production forecast for 2024 of 57,000 vehicles is exactly the same as in 2023, when 57,232 vehicles rolled off the production line. The electric car startup is currently producing the R1T pickup and the R1S SUV as well as the Electric Delivery Van (EDV) for Amazon on a separate line. The company does not provide a breakdown of how many of each model series Rivian builds in its reports.

What is clear, however, is this: Financially, 2024 is likely to be a challenge for Rivian, even if the cooperation with Volkswagen announced at the end of June should soon do the balance sheets good. In 2023, the company’s net loss totalled 5.4 billion dollars (4.98 billion euros). Within three years, Rivian has already lost 16.8 billion dollars. However, as the manufacturer has extended its drive options for the two R1 models downwards over time and introduced the smaller R2 in the spring, it is likely that increasingly cheaper Rivian vehicles will be sold. If production remained constant, the company’s turnover would therefore theoretically fall slightly. Rivian intends to publish its business figures on 6 August after the close of trading.

In its Q1 annual report, Rivian commented on the planned production capacities following the expansion of its plant in Normal: these are expected to be 215,000 vehicles per year, of which 155,000 units will be accounted for by the new R2 model. The current plant capacity is expected to be 150,000 units per year. Rivian did not say when the expansion in Normal will be completed. However, it is known that the electric mid-range SUV will be launched on the market in 2026.

rivian.com