Rivian aims to produce 50,000 vehicles this year, but it seems that the EV automaker is planning to produce more, according to Electrek.
(Photo : by Mario Tama/Getty Images)
PHOENIX, ARIZONA - OCTOBER 08: The Rivian logo is displayed at a Rivian Service Center on October 8, 2022 in Phoenix, Arizona. The electric vehicle manufacturer is recalling nearly all of the over 12,000 vehicles it had produced to tighten an ‘insufficiently torqued fastener’ which could potentially affect steering.
Following the release of the company's fourth-quarter earnings, the company will be raising the bar with new internal EV production goal.
Rivian's New Goal
Rivian's Q4 and full-year 2022 earnings hit a new 52-week low this week as disappointments arose from missing production guidance. A new report from Bloomberg stated that the company told its employees the EV maker can produce more vehicles this year.
The production of 62,000 EVs is possible this year. Rivian will ramp its second shift to boost the production of the R1T and R1S at its Illinois manufacturing facility as its progresses through the quarter.
The EV maker has been going through a lot of hurdles over the past few months.
Employee Layoffs
It can be recalled that the company laid off more than 300 people in California last fall, and now the company said that it's cutting hundreds more workers. The move is to help conserve cash as it prepares for a possible industry-wide price war.
With plans to boost production of R1 trucks and the EDV delivery vans for Amazon, along with the development of its upcoming smaller R2 vehicle platform.
The company reassured that the employee cuts will not affect the manufacturing jobs are their Illinois factory.
The company went public through successful initial offering in late 2021, which made the company raise almost $12 billion. However, their shares have lost almost 90 percent of their value since, which has led to the EVmaker to rethink its expansion plans as it work towards profitability.
Tesla and Ford Motoro also had recent price cuts that led to concerns that other automakers may be forced to reduce EV prices amid the growing competition in the industry.
...And Recalls
The company is also dealing with recalls for its 2022 R1T and R1S as customers filed with the National Highway Traffic Safety Administration (NHTSA) last week.
Rivian will conduct a voluntary recall that affects 12,700 Rivian EVs concerning a sensor in passenger seatbelt system that may cause a reduced, or complete lack of deployment in the passenger airbag.
The recall affects several 2022 Rivian R1T and R1s EVs, and letters announcing the recall will go out to potentially affected EV owners on April 8; however, those notices are already going out via email.
This only shows that despite Rivian ramping its production, it is a relatively young EV company that is still looking to set a momentum in scaled EV production.
Related article: Elon Musk Warns Rivian, Lucid to Change Their Strategies to Avoid Bankruptcy
