Rivian is aiming to manufacture up to 62,000 EVs in 2023, according to sources familiar with the matter. This figure is an increase from the 50,000 vehicles that the company announced in February 2023 during its earnings call. The increase in production target was communicated to employees during an all-hands meeting on Friday, according to insiders.
Rivian’s internal projection is in line with the estimates offered by analysts prior to the initial disclosure of the 50,000-vehicle production target, indicating that the company is still on track despite the production delays and supply chain issues that have plagued the industry in recent months.
Rivian’s shares rose by as much as 11% to $17.48 following the report, providing a welcome boost for the company’s stock price. However, the shares remain below where they were trading prior to the February announcement, which caused the company’s stock to fall by the most in nine months.
See also: Rivian CEO RJ Scaringe Confirms Company Will Not Join Tesla in EV Price War
Rivian is considered a strong contender among the growing number of EV startups competing with industry leader Tesla Inc. The company’s successful 2021 IPO was the sixth largest in US history, but production delays and supply chain issues have hindered the company’s progress. Rivian was only able to produce 24,500 vehicles in 2022, falling short of its own target of 25,000 units.
Rivian has three EV models, including the R1T pickup, the R1S sport utility vehicle, and an electric delivery van for Amazon.com Inc., its largest investor and customer.
