Photo: Rivian
Rivian has released the production and sales number for the third quarter, revealing an impressive production ramp. The company said it is on track to deliver the projected 25,000 EVs in 2022, but problems mount for the startup.
After entering the market with the widely acclaimed R1T pickup, Rivian hit the wall with production problems. For the past year, the American startup has struggled to solve an intricate production puzzle while at the same time starting construction of a new factory in Georgia. Since Rivian uses many off-the-shelf parts for its EVs, the economics are not always great, especially with inflation and supply chain bottlenecks. The company earlier revealed that it is burning through piles of cash at an alarming rate.
Even so, the production ramp-up at its Normal, Illinois factory seems to be going great, boosting confidence that Rivian will meet its 25,000 units production target for 2022. The latest production figures for Q3 2022 show the EV maker produced 7,363 vehicles in the quarter while delivering 6,584 in the same period. This is a significant step-up compared to the Q2 result of 4,401 vehicles.
With a total production of 14,317 EVs throughout 2022, Rivian still needs around 11,000 units in Q4 to meet its target for 2022. This is not impossible, but not easy either. If Rivian succeeds, its Normal, Illinois factory will reach an annual production run of around 50,000 units, which is impressive considering it started from almost zero in January.
Rivian also counts on the future production facility in Atlanta, Georgia, to prop these numbers. Unfortunately, this opens a sour chapter for the EV startup. A judge just rejected an agreement between the local development authority and the Amazon-backed EV company for local incentives. Rivian counted on some $1.5 billion from the state of Georgia to complete the factory that would produce 400,000 vehicles and employ 7,500 workers.
This is not the end of Rivian problems, though. The IRA incentives would not be available for many of its current models. At the same time, Rivian sold its vehicles at a significant loss and warned of a wider operating loss this year, according to Automotive News. Although the company still has enough cash reserves, those might not last long if Rivian does not step up its game.
Even so, the production ramp-up at its Normal, Illinois factory seems to be going great, boosting confidence that Rivian will meet its 25,000 units production target for 2022. The latest production figures for Q3 2022 show the EV maker produced 7,363 vehicles in the quarter while delivering 6,584 in the same period. This is a significant step-up compared to the Q2 result of 4,401 vehicles.
With a total production of 14,317 EVs throughout 2022, Rivian still needs around 11,000 units in Q4 to meet its target for 2022. This is not impossible, but not easy either. If Rivian succeeds, its Normal, Illinois factory will reach an annual production run of around 50,000 units, which is impressive considering it started from almost zero in January.
Rivian also counts on the future production facility in Atlanta, Georgia, to prop these numbers. Unfortunately, this opens a sour chapter for the EV startup. A judge just rejected an agreement between the local development authority and the Amazon-backed EV company for local incentives. Rivian counted on some $1.5 billion from the state of Georgia to complete the factory that would produce 400,000 vehicles and employ 7,500 workers.
This is not the end of Rivian problems, though. The IRA incentives would not be available for many of its current models. At the same time, Rivian sold its vehicles at a significant loss and warned of a wider operating loss this year, according to Automotive News. Although the company still has enough cash reserves, those might not last long if Rivian does not step up its game.
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