As it ramps production, EV maker Rivian (RIVN) continues beating expectations in a critical year. In the second quarter, Rivian delivered 12,640 EVs, exceeding expectations and putting it on track to reach its 50K production goal. Rivian’s stock surged on the news, up over 13%.
Rivian stock up after producing 13,992 EVs in Q2
After producing 9,395 vehicles in the first quarter of the year and delivering 7,946, Rivian said it was off to a slow start as it warned retooling its EDV assembly line (to add its new in-house Enduro drive units) would slow progress.
Despite the slow start, Rivian said it would help accelerate output throughout the year by streamlining production and slashing costs.
So far, the move seems to be paying off, with Rivian producing 13,992 EVs at its Normal, Illinois, facility in Q2 2023, representing an increase of 48% from the first quarter. The number crushed expectations, with analysts forecasting around 11,000 deliveries in the second quarter.
Rivian says it “believes it is on track to deliver on the 50,000 annual production guidance” it has been standing by all year.
Rivian’s stock was up over 8% in pre-market trading and is up another +15% at the time of this writing.
The news comes a day after Tesla also crushed expectations, delivering over 466,0000 electric models in the second quarter of 2023.
During an interview last month, Claire McDonough, Rivian’s CFO, said that the EV maker was beginning to see some relief regarding the supply chain issues that have plagued the industry over the past several years.
She also explained Rivian’s Enduro production ramp is ahead of schedule, with the first saleable R1 series model fitted with the in-house drive unit rolling off the production line in Q2.
McDonough added the EV maker is seeing a “robust backlog of preorders that extends into 2024” as it shifts focus to R1S electric SUV production to meet the demand.
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