As the year begins, Rivian Automotive claims it fell shy of its 2022 production target of 25,000 vehicles due to supply chain issues and a slowdown at its assembly plant in Normal, Illinois.
Prior to the numerous shutdowns in the middle of the year due to a scarcity of essential parts, Rivian had initially estimated an output of 50,000 vehicles. In its first full year of manufacturing, the EV startup reported earlier this week that it had manufactured 24,337 vehicles. This included Amazon’s electric delivery vans, R1S crossovers, and R1T pickups.
For one of the most promising EV companies in the world, the missed production cap resulted in a difficult year. Even after adding a second shift to enhance the supply of parts, Rivian only produced 10,020 vehicles for the fourth quarter.
Prior to the announcement of their target, Rivian’s shares fell 5.9% to $17.34, although after-hours trading saw largely no change. RJ Scaringe, the CEO, commended the business for persevering in the face of obstacles.
In an email sent out, he wrote, “Considering the supply chain issues that caused the plant to close for 20 days and shut down early on 50 days in the last 12 months — and the inclement weather that forced us to close for an additional five days — our team stayed focused on our target and worked through the challenges together”
Despite not achieving its desired target, Rivian was nevertheless able to complete 25,051 vehicles, according to Scaringe. He also notes, “714 vehicles still need parts, software certification, wheel alignment, charging, and other finishing touches before they are completely finished.”
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