EV maker Rivian’s deliveries supercharged by production ramp-up

July 6 (Reuters) – Rivian Automotive Inc (RIVN.O) delivered 4,467 autos within the second quarter, practically 4 instances greater than the previous quarter, because the electric-vehicle maker benefited from a ramp-up in manufacturing and powerful demand.

The corporate additionally mentioned on Wednesday it was on observe to fulfill its annual manufacturing goal of 25,000 items after output jumped 72% sequentially to 4,401 autos within the quarter.

The upbeat figures despatched Rivian’s shares practically 13% increased, offering some aid to a inventory that has misplaced nearly three-fourths of its worth on this 12 months’s equities selloff.

“Crucial factor for the inventory proper now could be to offer buyers confidence on its 2022 forecast,” mentioned Redburn analyst Charles Coldicott.

Whereas a broader shift to electrical autos and surging gas costs because of the Russia-Ukraine conflict have fed demand for Rivian’s merchandise, the corporate has struggled to spice up output within the face of industry-wide provide chain shortages. learn extra

In March, it halved its deliberate manufacturing goal for 2022.

CFRA Analysis analyst Garrett Nelson mentioned “Rivian might want to function at a lot increased utilization charges within the second half of 2022 with a purpose to hit its steerage.”

The corporate has a manufacturing facility in Regular, Illinois, the place it produces the R1S sport utility car, R1T pickup truck and a supply van for investor and buyer Amazon.com Inc (AMZN.O). The web retail big has a stake of about 18% in Rivian.

The Illinois manufacturing facility has an annual capability of 150,000 autos and the corporate has mentioned it intends to extend that to 200,000 by 2023.

Rivian additionally plans on opening its second plant close to Atlanta in Georgia in 2025 because it expects demand for its autos to develop.

Reporting by Eva Mathews and Akash Sriram in Bengaluru; Enhancing by Aditya Soni

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