Rivian R1T Falls Victim To Production Issues
It was only a matter of time.
It’s bad news out of Rivian HQ this week, as divulged via the company’s Q4 shareholder letter. Of course, it’s also bad news for those of you still waiting on your Rivian EV truck, tailor-made for the type of folks that wear Patagonia and manage their dog’s Instagram account. Out of the 83,000 reservations currently placed with the EV manufacturer, Rivian say they’re only producing around 25,000 trucks and delivery vans this year.
Critically, that number does include the delivery vans Rivian has allegedly agreed to produce for Amazon. That means the number of produced R1T electric trucks this year will be somewhat less than 25,000. Unfortunately, it’s unclear by how much.
By now, Rivian shareholders are already feeling the ramifications of this announcement. At the time of this article’s publication, the company’s stock has dropped a massive 13% down to roughly $38.00 a share. Unfortunately for both CEO RJ Scaringe and shareholders, this is the lowest point the Rivian ticker has hit since the brand’s IPO in November. This also comes hot on the heels of a price hike that Rivian received widespread criticism for, eventually walking back the hike.
As ever, the semiconductor shortage ravaging automakers the world over is to blame. Otherwise, Rivian’s Q4 Report states that its factories would be able to crank out a massive 50,000 vehicles yearly. Again, note that figure includes the Amazon delivery vans Scaringe’s company is set to produce.
Mercifully, Rivian’s Q4 letter also pointed out some upcoming high points for the EV brand. New 800-volt architecture will bring an integrated on-board charger. Happily (and similarly to Tesla), Rivian has also outlined a plan to introduce a new type of lithium iron phosphate (LFP) battery into their vehicles. These will ideally help to both drop charging times, increase range figures, and help add some versatility to the Rivian R1T and R1S models. And when your brand is as outdoor-focused as Rivian’s, having the range and versatility to get and stay outdoors is key.