Rivian Expects to Deliver 25,000 Vehicles as Supply Chain Issues Persist Through 2022

by Victoria Santiago
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Like many other automakers, Rivian has been hit hard by supply chain issues this year. As a result, their output is less than expected. In fact, the EV startup is only expected to deliver around 25,000 vehicles this year, which is quite low. Still, though, it’s a modest increase from the automaker’s earlier expectations.

Reservations for the company’s vehicles are much higher than what the EV startup will be able to deliver. As of March 8, there were around 83,000 reservations for Rivian trucks and SUVs.

At a Glance

  • Rivian is expecting to produce 25,000 electric trucks and SUVs this year.
  • This is mainly due to supply chain issues, but some internal problems as well.
  • When revealing these numbers, Rivian said that they “are not immune to supply chain issues.”
  • The EV startup’s shares went down by more than 14% after this announcement.

Amid Supply Chain Issues, Rivian Is Not Performing As Expected

Rivian’s modest 2022 production of 25,000 trucks and SUVs did not do well on Wall Street. The EV startup had already missed Wall Street’s fourth-quarter earnings expectations. As a result, shares went down by more than 14%. A little bit before that, the company’s shares had already hit a new 52-week low on the stock market. The company missed production targets in 2021, too. Overall, shares of Rivian have gone down about 60% this year.

For 2021, Rivian reported an adjusted operating loss of $2.8 billion, including $1.1 billion in the fourth quarter. The company’s net loss for the year was $4.7 billion, including $2.5 billion during the last quarter.

The company is still financially stable. Rivian had $18.4 billion in cash on hand at the end of last year. By the end of 2023, the automaker expects capital expenditures to be about $8 billion.

The Automaker’s Original Goal Was To Deliver 150,000 Vehicles By 2023

The company also has production goals to hit by 2023. Rivian previously wanted to make 150,000 trucks and SUVs by the end of next year. Given the way things are going now, it’s unclear if that’s still their goal.

Reservations for the EV startup’s vehicles continue to rise. After all, the Rivian R1T pickup truck has gotten good reviews and a sleek look to match. In the course of three months, reservations for the automaker’s truck and SUV models have gone up by 10,000.

In a letter, Rivian shared its supply chain woes. “In the immediate term, we are not immune to the supply chain issues that have challenged the entire industry,” Rivian wrote. “Those issues, which we believe will continue through at least 2022, have added a layer of complexity to our production ramp-up.”

25,000 cars is a low number, but it’s better than what they have been doing. And Rivian CEO R.J. Scaringe says that this low number is due to issues out of the automaker’s control. CNBC reports that the company would be able to make more than 50,000 units this year if there were no supply chain issues.

Outsider.com