German Manager Magazin: Rivian raises forecast, investors cash in002654

The Tesla-Competitor Rivian gets its manufacturing problems under control. In the past quarter, production increased by around 50 percent within three months to 13,992 vehicles. Rivian has now increased its production target for this year from 50,000 to 52,000 vehicles – twice as many vehicles as last year.

Tesla delivered a good 466,000 vehicles worldwide in the last quarter alone. However, with its electric pick-ups and SUVs, Rivian is active in a market segment that is popular in the USA and that Tesla has not yet tapped into. The electric pioneer is just about to ramp up production of its electric pickup “Cybertruck”.

Rivian delivered 12,640 vehicles in the second quarter, 59 percent more than in the first quarter and significantly more than the 4,467 electric vehicles delivered in the second quarter of 2022, the company announced on Tuesday after the market closed. Rivian’s quarterly loss fell to $1.2 billion from $1.7 billion a year ago. Revenue increased year-over-year to $1.12 billion from $364 million.

In the past few quarters, Rivian had been slowed down by problems in the supply chain, among other things. The company also builds electric delivery vans for Amazon. Amazon wants to use up to 100,000 Rivian delivery vans by 2030 – a kind of life insurance for the electric carstartup. The retail giant also took a stake in the electric car company with the 2019 deal and currently holds around 17 percent of the shares in the electric car manufacturer.

The news met with restrained joy among investors. The shares initially rose 1 percent in after-hours trading on Tuesday, before dropping around 7 percent to $ 22.99 by Wednesday evening (CET). However, the Rivian share has risen sharply since the beginning of July: from 16.6 dollars to 27.6 dollars in the meantime.

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