Rivian, the EV brand synonymous with adventuring and off-roading, has announced that it aims to hit its 25,000 EV target for 2022. The announcement was made as part of its Q3 earnings report.
Rivian has already announced that it had ramped up production last quarter to over 7,400 EVs per quarter. That’s to hit the 25,000 EV production target it had set earlier in the year.
During the last quarter, Rivian produced 7,363 EVs at its Illinois plant and delivered about 90% of the production to customers by the end of the quarter. That’s a total of 6,584 EVs delivered to customers from the premium electric ute and electric SUV manufacturer.
The 25,000 EV target it had set for the year will need to be achieved as the order backlog continues to grow. With the rising EV interest in the US, Rivian has a backlog of over 98,000 EVs according to the latest reports by the company. That could take over 3 years at current production levels.
Rivian’s Q3 earnings came to $US536 million but because of its investment in its production ramp up the net loss is $US1.7 billion USD. Rivian explained this by:
“As we produce vehicles at low volumes on production lines designed for higher volumes, we have and will continue to experience negative gross profit related to labor, depreciation, and overhead costs.”
As things continue to change with high inflation and interest rates, Rivian is in a challenging time to ramp up EV production. Some relief is the company’s order backlog and current lack of products in the premium EV ute and SUV market.
With production ramping up further over the coming months to hit the 25,000 production target, it presents opportunities for Rivian to continue to gain more revenue in Q4 and meet investor expectations. All this while delighting adventuring EV ute and premium SUV customers.
Riz is the founder of carloop based in Melbourne, specialising in Australian EV data, insight reports and trends. He is a mechanical engineer who spent the first 7 years of his career building transport infrastructure before starting carloop. He has a passion for cars, particularly EVs and wants to help reduce transport emissions in Australia. He currently drives a red Tesla Model 3.