Rivian's Q1 Delivery Results Prove Sacrifices Have Not Been Made in Vain

Rivian announced that it manufactured 9,395 vehicles and delivered 7,946 in the first quarter of 2023. When compared to a behemoth like Tesla, these numbers may not seem like much. But for the young automaker’s future, they are vital and prove one important thing – this company does not want to just survive, it wants to thrive!

Even though the numbers include the all-electric vans known as the EDVs, it’s important to remember that Rivian temporarily stopped its production back in January for two weeks to prepare the factory line for the in-house developed Enduro motors. These power units have the potential to reduce costs for the brand, which translates into more generous profit margins if everything goes right.

Moreover, the production for Q1 2023 is nearly similar to that of Q4 2022, when the manufacturer sent out the factory gates 10,020 units.

Better yet, it's great news for the startup that it managed to beat analyst consensus. It's a great way of showing that management is involved and workers are responding well to the latest modifications.

“This is a great start to the year, and we remain on track to hit our annual production guidance previously provided,” said the company’s Chief Operating Officer. The man is right, even though to some this may not feel like a major success.

The past is a stepping stone, not a milestone

Rivian made a couple of questionable decisions last year and continued doing the same in 2023. Let’s briefly look at what happened in the past three months:

• the Membership bundle was dismantled, and the “a la carte” options have not appeared anywhere just yet;
• the mighty impressive camp kitchen was not delivered to anyone in 2022, and was also removed from the online shop because “other options are being explored;”
• the free high-power charging through the Adventure Network (RAN) is ending this month;
• the Meridian sound system was replaced with an in-house solution which seems to not satisfy most new owners;
• the Chilewich floor mats disappeared;
• the front trunk and the center dashboard assemblies do not include a 12V socket anymore;
• it decided to cut 6% of its workforce;
• online reports about production errors increased;
• customer communication is still an issue.

Besides all these problems, Rivian also lost some of its executives. Most notably, the man responsible for implementing the McLaren-like suspension system for the R1-series returned to the British brand.

Weirdly enough, the company that intends to build a new factory in Georgia as fast as possible so it can continue ramping up production decided last year to not make public the number of orders it received from new customers. The rumors said this was a “bad metric” and it did not reflect the company’s capacity to fulfill its targets.

We, however, believe that it’s about disappointing a couple of people who may have canceled their reservations. Moreover, the number of new deposits for an all-electric pickup truck or SUV might have not outpaced the number of deliveries, which can signal weakness.

Still, it’s worth mentioning here that Rivian said the R1-series units “exhibit quarter-over-quarter production growth.”

Hope can shape a better future for everyone

But it’s not all bad. Since January, Rivian has confirmed that the R1S with the dual-motor spec (the Enduro units) will be delivered from September onwards. The automaker also shined in the safety department thanks to the IIHS and its updated rules that put the R1T among the best vehicles currently sold in the U.S. The truck is well-equipped to deal with even the most complicated scenarios involving passengers, cyclists, and pedestrians.

The EV maker is also concerned about sustainability, so it signed an agreement with Clearloop and invested in a solar farm. Located in Tennessee, this renewable source of energy can power the current Waypoint network, which comprises Level 2 chargers.

The brand is also not done perfecting its models as it patented a low-range gearbox which seems to do the same thing as the part that’s going to be found on the upcoming Mercedes-Benz EQG. The transmission will help with navigating wild paths because it theoretically attaches to each of the four motors. It has not been put into practice yet. This one may require some patience as it could also prove to be somewhat expensive for quad-motor R1S and R1T owners who wish to make their vehicles more capable.

On top of this, the “In the Wild” events were reactivated. These can help more people get in touch with the brand’s products and the customer base might grow!

Rivian is also trying to convince Amazon to either order more EDVs or allow the brand to secure new orders from other customers, which is a sign that the vehicle is great and has the potential to transform how package deliveries are happening nationwide. It’s also great for the Irvine-based entity because it signals that more prospective customers are interested in exploring its fleet solutions.

At the end of the day, however, Rivian’s Q1 production and delivery numbers show that it wants to be among the winners in the EV space. It truly has the potential to succeed, but let’s see how Q2 goes before talking about the stock price and other things that may not truly reflect the brand’s worth. The automaker can reach the goals set within this year’s guidance if it stays on the right track.

Finally, the brand plans on discussing its earnings on May 9 after the stock market closes.