Breaking News
1. Amit Shah to introduce bills for removal of PM, CMs, Ministers held on serious criminal charges in Lok Sabha today      2. Trump imposed tariffs on India to end Russia-Ukraine war, says White House      3. ‘Oil laundering’: Donald Trump’s trade czar paints India as villain in Russia-Ukraine war      4. China ready to supply fertilizer, rare-earths and tunnel machines to India      5. 3 Killed, Over 60 Injured In Aerial Firing During Pakistan's Independence Day Celebrations      6. Trump warns Russia of very severe consequences if Putin blocks Ukraine deal      7. Heavy rain batters Telangana; IMD warns of intense showers across North India      8. Massive space object could be alien probe on 'reconnaissance mission,' expert warns      9. Trump weighs major marijuana policy move that would reclassify the plant      10. Illinois Gov Pritzker pressed on billionaire status by NBC's Kristen Welker      11. 'Progressive snowflake era' over as Hollywood studios abandon woke programming      12. 'Bureau bloodbath': Trump FBI leaders face backlash after ousting key agents      13. "We'll Take Half World Down With Us": Pak Army Chief Asim Munir's Nuclear Threat In US      14. Anas Al Sharif among 5 Al Jazeera journalists killed in Israeli strike in Gaza      15. After UK and France, Australia to recognise Palestine but with condition: ‘No role for Hamas’      16. Trump's tariffs on India alarm US manufacturers: Former Governor Chris Sununu      17. Ukraine's Volodymyr Zelensky may get the Trump-Putin summit invite as White House considers move: Report      18. Meteorite fragment that slammed through homeowner's roof is billions of years old, predates Earth: professor      19. Trump nominates ex-Fox News host Tammy Bruce as deputy UN ambassador      20. Cuomo demands NYC mayoral hopeful 'move out immediately' from $2,300 apartment     

Electric Vehicle Maker Rivian Responds to Strong Demand with Increased Production

  • Posted on November 9, 2023
  • Business
  • By Arijit Dutta
  • 431 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