As a result of these losses, Rivian revised their production target for this year to 25,000 units. Rivian is ready to spend the existing capital to produce their cars this year.
“This is reflected in the recent strong week-on-week production rate growth, where our output has been constrained primarily by supplier constraints,” Rivian wrote in a statement.
“The factory's production areas, including battery module, general assembly, body assembly, body repair, and paint shop, continue to achieve record weekly production levels for Rivian,” the statement continued.
Over the past two weeks, average weekly production has more than doubled from the previous four quarters.
“As of March 8, we have produced 1,410 vehicles and 2,425 vehicles since the start of production,” Rivian claims.
Rivian is confident to produce 25,000 vehicles this year, consisting of 3 models, namely the R1T (pickup), R1S (SUV), and EDV (delivery van). However, it is likely that supply chain problems and the scarcity of chips may still limit Rivian's room to increase production.
Reportedly, the revised production target did not make investors happy. They had time to sell their shares which made Rivian's shares now drop by 13%.
The rivian valuation is now trading at a low of US$33 billion after being valued as high as US$150 billion following its public offering (IPO) last November.
However, Rivian still has funds of US$18 billion as of the last quarter of this year and they have received pre-orders for 83,000 vehicles, even though the company's condition is arguably not in a good condition.