Breaking News
1. China, US agree to extend tariff pauses after 'constructive' talks in Stockholm      2. Delhi rains: Air India, Indigo issue advisory as gusty winds, rainfall likely to impact flight operations      3. 2 satellite phone signals 17 days apart, help from nomads, and a peak named Mahadev – inside the operation that killed 3 Pahalgam terrorists      4. Trump hints at 20-25% tariff on India, again claims credit for ceasefire between India and Pakistan      5. Videos capture insane traffic in Hawaii: Locals, tourists try to get to higher ground amid tsunami warning      6. Truce is called, cultural tussle remains: behind Thailand-Cambodia hostility      7. Shane Tamura, The Gunman Behind Deadly Manhattan Building Shooting      8. Heavy rain in Delhi-NCR, IMD warns of intense downpour by afternoon      9. Himachal Pradesh: 3 dead, woman missing as heavy rains trigger flood-like situation in Mandi      10. Before whom did India surrender?’: Gaurav Gogoi leads Opposition charge      11. ‘I kept saying I wasn’t the one’: Typo puts UP man in jail for 22 days; clears name after 17 years      12. Israel declares ‘tactical pause’ in Gaza fighting: What we know so far      13. BMW rams into father-daughter returning from hospital, 5-year-old girl killed      14. PM Modi in Tamil Nadu: ₹4,900 crore infra boost, tribute to Rajendra Chola I with commemorative coin      15. 6 Dead, Several Injured In Stampede At Haridwar's Mansa Devi Temple      16. Thailand, Cambodia agree to ceasefire talks after Donald Trump steps in, but border clashes persist      17. Mumbai rains: IMD forecasts more rain as city faces waterlogging, local train delays      18. Gaza deal collapses: Donald Trump says Israel will have to ‘get rid of’ Hamas      19. Seven students killed as roof of govt school collapses in Rajasthan      20. India-UK trade deal signals Modi's priorities as New Delhi eyes EU, US pacts     

Electric Vehicle Maker Rivian Responds to Strong Demand with Increased Production

  • Posted on November 9, 2023
  • Business
  • By Arijit Dutta
  • 371 Views

Rivian, a prominent player in the electric vehicle (EV) industry, announced an increase in its production forecast on Tuesday, November 7, in response to the growing demand for its electric trucks and SUVs. The company is set to produce an additional 2,000 vehicles this year, bringing the new target to 54,000 units.

Electric Vehicle Maker Rivian Responds to Strong Demand with Increased Production Image Source -www.auto.economictimes.indiatimes.com

Rivian, a prominent player in the electric vehicle (EV) industry, announced an increase in its production forecast on Tuesday, November 7, in response to the growing demand for its electric trucks and SUVs. The company is set to produce an additional 2,000 vehicles this year, bringing the new target to 54,000 units.

This optimistic outlook is a testament to the surging demand for electric vehicles in the market, even as the EV industry grapples with two significant challenges. The first challenge is the adverse impact of higher inflation on consumer purchasing power. This has led to price cuts by market leader Tesla in an attempt to stimulate demand. Tesla's CEO, Elon Musk, recently expressed concerns about the effects of high-interest rates on potential car buyers.

In contrast, smaller rival Lucid has revised its production forecast downward, causing a 4% drop in its shares. Lucid now anticipates producing up to 8,500 vehicles this year, down from its initial projection of over 10,000 units.

Rivian's CEO noted his surprise at how other players in the industry have scaled back their production targets. He is worried that this trend could create a "vacuum of products" in the EV market. Analysts speculate that Rivian, despite facing supply chain challenges, is showing resilience and may be on the path to recovery.

Also Read: Can England Secure A Champions Trophy Spot After Netherlands Win?

To avoid the need for price reductions, Rivian has shifted some production processes in-house, reducing its reliance on external suppliers and lowering costs. Notably, the company's higher-priced SUVs have seen stronger sales compared to its lower-priced R1T pickup truck, leading to an increase in the average selling price of its vehicles.

Additionally, Rivian disclosed its plans to terminate its exclusivity agreement with Amazon for its electric delivery vans. This move will open up opportunities for a broader customer base worldwide.

In the third quarter, Rivian reported revenue of just over $1.3 billion, in line with market estimates, and managed to narrow its quarterly losses compared to the previous year. This signifies the company's commitment to sustaining growth amid the evolving EV landscape.

Author
No Image
Author
Arijit Dutta

You May Also Like