Is there a production problem or is it just a farce? Recent Rivian news indicates that the company did not meet its production goals for 2022, which could be concerning. He goes head-to-head with the giants of the market, which means the company can hardly afford any slip-ups.
How far was Rivian from its 2022 production goal?
According to him, Rivian has set a goal of producing 25,000 vehicles for 2022. The company has built 24,337 electric vehicles, which just barely missed the target. While this error is less than 1,000 vehicles, it is a large number that can be alarming. During the fourth quarter, 10,020 electric vehicles were manufactured by Rivian, which could be big news for the company.
He tells us that Rivian halved its initial production target from 50,000 units to Mach 25,000 units. This means that half of all electric Rivian R1T trucks are going to customers than originally planned.
What is the reason for the shortage of Rivian trucks?
Most automakers still face supply chain disruptions and building anything but electric cars seems to exacerbate those disruptions. Not only have these issues forced this EV automaker to halve its production target, but it has also delayed the launch of the R2, a small vehicle, to 2026.
Tesla stocks are down for the same reason
The problems facing this new automaker that went public as recently as November 2021 are not unique. Tesla, the world’s largest electric vehicle maker, also missed its expected production and delivery targets for the fourth quarter of 2022. This caused Tesla’s share price to drop.
Why is the narrow fault a concern for Rivian?
The Rivian R1T is hitting the market with a relatively high price tag. This truck falls into the mid-size pickup category. However, all electric trucks, regardless of size, are expected to compete. Pricing for the R1T starts at $70,000, which puts it closer to most luxury pickup models.
The problem for the Rivian truck is competing with the big dogs in the pickup truck market. Ford, GM, and Stellantis all have a strong foothold in the truck market with the F-150, Silverado 1500, Sierra 1500, and Ram 1500. All four of these trucks will soon have electric alternatives on the market. Ford already competes in this category with the Ford F-150 Lightning.
Will the Rivian R1T reach Ford’s production numbers?
Rivian recently built a new production facility in Georgia, which increases the levels of production possible for this company. Unfortunately, one additional facility won’t be enough to compete with similar numbers of what Detroit’s Big Three can offer.
Of course, it’s possible that the Rivian R1T electric truck was never intended to compete with the category’s standard-bearers, but it’ll need a solid foothold if the company is to survive. This means that this company cannot afford to miss production targets.
Next, check out Georgia’s changes to allow or learn more about the new Rivian R1T electric truck in this video below: