Tuesday, July 16, 2024

Rivian Leads the Charge in US EV Market as Registrations Continue to Surge

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Rivian, the American electric vehicle (EV) manufacturer, is making significant strides in the US EV market, outpacing its competitors like Lucid and VinFast. Recent data from Experian, as reported by Automotive News, reveals that Rivian secured the eighth spot in US EV registrations from January through July, capturing 2.8% of the overall EV market.

In July alone, Rivian recorded 2,750 registrations for its R1T electric truck and R1S electric SUV, a modest improvement compared to its monthly average of 2,596 in the first half of the year. From January to July, Rivian amassed a total of 18,359 new registrations, excluding electric delivery vans (EDVs). The R1T accounted for 7,611 of these registrations, while the R1S contributed 10,748, with the company shifting its production focus toward meeting the higher demand for the R1S models.

Rivian’s recent achievements include surpassing second-quarter production estimates with a 50% increase compared to Q1, resulting in 13,992 units. The company subsequently raised its annual production guidance to 52,000 units. CEO RJ Scaringe emphasized the pivotal role of ramping up the in-house Eduro drive units in achieving these production milestones.

Speaking at Morgan Stanley’s 11th annual Laguna Conference, Scaringe expressed optimism, stating that the company had “rounded the corner.” As Rivian optimizes its production facility in Normal, Illinois, the company’s profit margins are also on the rise, with a $35,000 improvement in gross profit per vehicle delivered in the most recent quarter.

While Rivian’s growth is impressive, it faces competition from Ford’s F-150 Lightning, which recorded 11,883 registrations through July. Ford’s price reductions in July, up to $10,000, played a crucial role in boosting demand for the F-150 Lightning.

Ford F-150 Lightning. (Credit: Ford)

Comparatively, the Rivian R1T, starting at $74,800 (including shipping) with an estimated 270 miles of range, faces pricing challenges against the Ford model, which starts at $51,990 (with shipping) and offers 240 miles of EPA range.

In contrast to Rivian’s success, several other EV startups, including Lucid, VinFast, and Fisker, are grappling with market challenges. Lucid registered 348 units of its luxury Air EV in July, accumulating 3,789 registrations through July. Lucid’s recent price cuts, with the 2023 Air electric sedan starting at $82,400, have not fully alleviated its struggles. Production declined after reaching its peak in the fourth quarter of 2022.

Credit: Vinfast

Porsche’s Taycan, a sole electric vehicle, outpaced Lucid Air with 3,935 registrations from January through July, signaling tough competition from Tesla, which continually reduced prices throughout the year.

VinFast, a Vietnamese newcomer to the US market, reported 19 new registrations for its VF 8 electric SUV in July, reaching a seven-month total of 170. While the company initially made a strong debut on the Nasdaq stock exchange, its value has since declined by over 80% from its peak.

Fisker Ocean Electric SUV. (Credit: Fisker)

Fisker, after delivering its first EV in the US in June, saw 30 new registrations for its Ocean model in July, bringing the year’s total to 37. Due to its recent entry into the market, Fisker ranked last among the 26 EV brands in July.

Despite increasing competition, Rivian’s performance has garnered praise from analysts like Dan Ives of Wedbush, who views the company as “one of the core EV players over the next decade.” Ives also noted that “demand looks strong,” with improved visibility into 2024.

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