Rivian hikes production target amid EV demand boost

STORY: Rivian on Tuesday (November 7) raised its production forecast for the year by 2,000 vehicles.

This target, now at 54,000 units, comes on the back of sustained demand for its trucks and SUVs.

Rivian’s upbeat forecast is a small win for the electric vehicle industry, which is reeling from two key issues this year.

Higher inflation has hurt buyer appetite - and price cuts at market leader Tesla to stimulate demand.

Last month, Tesla CEO Elon Musk said he was concerned about the impact of high interest rates on car buyers

While smaller rival Lucid cut its production forecast on Tuesday, sending its shares down 4%.

It now expects to produce up to 8,500 vehicles this year, down from an earlier projection of over 10,000.

Rivian’s chief executive told Reuters he was surprised at how much others have pulled back.

And he is concerned it could create “a vacuum of products” in the EV market.

Some analysts said that after sustained supply chain problems for Rivian, the EV maker may be starting to turn a corner, after showing what one market watcher called “resilience”.

To avoid slashing prices, it has taken elements of production in-house to reduce dependency on suppliers, and slash costs.

The automaker's higher-priced SUV sales have outpaced its lower priced pickup truck, the R1T, boosting the average selling price of its vehicles.

Rivian also announced plans to end its exclusivity deal to Amazon for its electric delivery van, opening the door for more customers around the world.

The carmaker's Q3 revenue of just over $1.3 billion was in line with estimates, while its quarterly loss narrowed from a year earlier.