(Reuters) -Rivian surpassed analysts’ expectations for fourth-quarter deliveries on Friday and said its production was no longer constrained by a component shortage, a positive sign for the electric vehicle maker aiming to turn its first profit.
Shares of the California-based company rose nearly 6% in premarket trading. The stock lost more than 40% of its value in 2024.
The shortage of the part used in its R1 SUV and R1T pickups, as well as its delivery vans, started in the third quarter and forced Rivian to slash its annual production target in October.
“The previously discussed shortage of a shared component on the R1 and RCV platforms is no longer a constraint on Rivian’s production,” the company said on Friday.
Rivian handed over 14,183 vehicles in the three months ended Dec. 31, compared with estimates of 13,472, according to 15 analysts polled by Visible Alpha.
That was a 42% jump from the previous quarter and marked Rivian’s highest deliveries in more than a year, even though Amazon.com, its biggest backer, takes fewer deliveries in the fourth quarter due to its focus on holiday season sales.
Rivian produced 12,727 vehicles in the quarter, compared with estimates of 11,398 units.
For 2024, production came in at 49,476 vehicles, down about 13% from a year earlier but above the company’s lowered target of between 47,000 and 49,000 units.
Rivian has cut costs sharply by renegotiating supplier contracts and revamping its manufacturing processes to turn a gross profit for the fourth quarter. It also entered a technology joint venture with German automaker Volkswagen last year that will provide a $5 billion lifeline.
EV makers are grappling with slowing demand as higher borrowing costs push buyers toward cheaper gasoline-powered hybrid vehicles and legacy automakers focus on rolling out electric vehicles.
Bigger rival Tesla reported its first fall in yearly deliveries on Thursday, also weighed down by the EV pioneer’s aging lineup.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Sriraj Kalluvila)
Rivian, the electric vehicle maker, has exceeded expectations for deliveries as supply chain issues ease up. The company announced that it delivered more vehicles than anticipated in the last quarter, showing strong growth in the EV market.
This positive news comes as a relief to Rivian, which has faced challenges with supply chain disruptions and production delays in the past. The company has been working hard to ramp up production and meet the increasing demand for electric vehicles.
Rivian’s success in beating expectations for deliveries is a testament to its dedication to innovation and sustainability in the automotive industry. With more consumers turning to electric vehicles, Rivian is well-positioned to continue its growth and make a significant impact on the market.
Overall, this news is a clear indication that Rivian is on the right track and is poised for further success in the EV market. Investors and consumers alike can look forward to more exciting developments from this innovative company in the future.
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EV maker, Rivian, deliveries, supply chain, electric vehicles, automotive industry, production, electric trucks, electric SUVs, sustainable transportation, renewable energy, EV news, Rivian stock, EV market, vehicle manufacturing, EV technology.
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