Electric vehicle (EV) manufacturer Rivian is set to expand production and reduce costs throughout 2023, despite reduced sales in Q1 due to factory downtime. The company produced and delivered fewer vehicles in Q1 than in the previous quarter. Rivian executives had previously warned of a temporary reduction in output due to an upgrade of its commercial van assembly line to include its new in-house Enduro motor and less expensive iron-phosphate battery pack. The production changes will lower costs and ease supply chain issues that have constrained production. Rivian is expected to post a moderately smaller net loss than the $1.7bn it reported in Q4 2022. Revenue is expected at $686m versus $663m in the previous quarter.
The automaker launched the R1T in late 2021 and the R1S last year. Its production ramp-up at its Normal, Illinois plant has been significantly slower than originally forecast. Rivian expects to make 50,000 vehicles this year but did not break down that number by model. In 2022, Rivian reported production of 24,337 and deliveries of 20,332. The company says it’s laying the groundwork for better numbers for the rest of the year. Rivian is also working on its next vehicle platform, called R2, which is being designed for more inexpensive models. Rivian is building a plant in Georgia to make R2 vehicles starting in 2026.
Despite manufacturing bottlenecks and financial concerns, Rivian has received industry accolades for its products. In early May, the Insurance Institute for Highway Safety named the R1S as a top safety performer for the 2023 model year. In February, the R1T earned the top J.D. Power award for satisfaction among owners of premium EVs.
