Rivian EV Production in 2021 - A Quick Update

Rivian's 2021 Production and Delivery Figures

Rivian, the American manufacturer of electric vehicles, announced on Monday that its vehicle production for 2021 reached 1,015 units. This number aligns with the revised projections the company communicated previously.

By the close of 2021, Rivian had successfully delivered 920 vehicles to customers. This information was released in a statement on Monday.

Impact on Stock Performance

The reported production and delivery numbers, coupled with a Wall Street Journal report concerning the departure of Rivian’s Chief Operating Officer last month, resulted in a decline in the company’s stock price. Shares concluded Monday’s trading session at $81.44, representing a 5.6% decrease.

Further downward pressure was observed in after-market trading, with shares falling an additional 3.3%.

Demand and Reservations

Rivian currently holds over 71,000 pre-orders for its R1T pickup truck model. These represent refundable reservations placed by prospective buyers, as detailed in a shareholder letter published in December.

Production Challenges and Adjustments

Initially, Rivian had set a production goal of 1,200 vehicles for the year. However, last month, company leadership, including CEO RJ Scaringe, adjusted this expectation downward.

The revision was attributed to ongoing supply chain issues and complexities encountered during battery production. Executives anticipated falling short of the original target by several hundred units.

Scaringe's Perspective on Production

During the December earnings call, Scaringe described the production process as a complex undertaking, using the analogy of an orchestra on two separate occasions.

He explained, “Ramping up a production system like this is, as I said before, a really complex orchestra.” He further elaborated on the intricate coordination required, involving numerous suppliers, automated robots, and a large workforce.

Battery Production and Future Capacity

Despite the lowered target, Scaringe emphasized that the company was “ramping largely as expected” during the December call.

He attributed the battery constraint to the initial stages of establishing a highly automated production line. Scaringe clarified that this did not indicate any long-term challenges.

The company is actively expanding its battery module production capacity with the addition of a second line, which is expected to significantly exceed the capacity of other areas within the plant.

Competition in the Electric Pickup Truck Market

As Rivian works to increase production volume, established automotive manufacturers like GM and Ford are preparing to introduce their own electric pickup truck models.

Ford announced on January 4th that it would almost double the production capacity of its forthcoming F-150 Lightning electric pickup to 150,000 vehicles annually by mid-2023, responding to strong customer demand.

Deliveries of the F-150 Lightning are anticipated to commence in spring 2022.