Rivian is on track to hit its production target of 25,000 vehicles this year with a record third quarter. Shares of Rivian rose nearly 8% in pre-market trading on the Tuesday following the announcement.
Rivian’s positive update comes after its bigger rival Tesla blamed logistical barriers for falling short of market expectations for the number of vehicles it delivered to customers in the third quarter.
Tesla shares closed down 8.6% on Monday, wiping more than $71 billion off the company’s market value in a single session, or $5 billion more than what Rivian has lost this year.
With a total of 14,317 vehicles produced this year, Rivian must produce more than 10,500 units in the last three months of the year to meet its production target.
“We consider the reiterated 22-year production target the most important component of the release, providing increased comfort to the company’s navigability,” said Truist Securities analyst Jordan Levy. company in a challenging supply chain context”.
Irvine, California-based Rivian has halved its annual production target from 50,000 units in March, as it faces supply chain difficulties.
Last week, a court rejected a joint proposal to secure local incentives for Rivian’s $5 billion manufacturing plant in Georgia, where the company proposes to produce 400,000 vehicles a year.
Rivian is currently working pickup truck R1Tthe R1S SUVs and delivery trucks for Amazon at the factory in Normal, Illinois.
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