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Rivian reported its third quarter gross sales at this time, and so they weren’t good. Extra particularly, deliveries had been right down to 10,018 items in Q3 2024, from 15,564 in Q3 2023 (YoY) and 13,790 in Q2 2024 (QoQ). Although, in line with Rivian, the problem just isn’t shopper demand. No less than, shopper demand for its EVs was not talked about. The difficulty Rivian highlighted was a provide chain downside.
“Rivian is experiencing a production disruption due to a shortage of a shared component on the R1 and RCV platforms. This supply shortage impact began in Q3 of this year, has become more acute in recent weeks and continues. As a result of the supply shortage, Rivian is revising its annual production guidance to be between 47,000 and 49,000 vehicles,” the company writes.
There’s no steerage on when this provide chain downside will probably be resolved. Nevertheless, Rivian did reiterate the identical full-year steerage it had supplied beforehand. “The company is also reaffirming its annual delivery outlook of low single digit growth as compared to 2023, which it expects to be in a range of 50,500 to 52,000 vehicles,” Rivian writes.
Curiously, regardless of the provision chain downside, Rivian produced just a few thousand extra items than it delivered — 13,157 versus the aforementioned 10,018, respectively. Is that only a matter of pure delays getting vehicles and SUVs to clients, or is Rivian additionally dealing with shopper demand challenges?
One factor I’m questioning is how a lot Rivian is perhaps dealing with an Osborne impact downside. The R1T and R1S are interesting autos to many consumers, however the recently announced R2 and R3 are positive to suit higher into many individuals’s budgets and I do know many EV fans are at present ready their launch earlier than shopping for their subsequent, or first, EVs. What number of of these clients may need purchased an R1S or R1T as a substitute if not for the launch of the R2 and R3?
In the intervening time, the R1T starts at $70,000 and the R1S starts at $76,000. Each are costly autos. Sure, one would assume that even at these costs, Rivian may attain 50,000+ annual gross sales, however who is aware of? The market has been seeing ups and downs, and increasingly more consumers have gravitated over to new electrical autos from legacy auto manufacturers.
Maybe Rivian just isn’t dealing with demand points in any respect and it’s all simply what the corporate mentioned in its press launch for buyers at this time — an sudden provide chain disruption is slowing down its gross sales progress. In any case, the way forward for the corporate now appears depending on the discharge, ramp-up, and success of the R2 and R3, identical to Tesla’s success has been closely depending on the lower-cost Mannequin 3 and Mannequin Y, slightly than the low-volume Mannequin S and Mannequin X (which have comparable quarterly gross sales to the Rivian R1S and R1T). We not too long ago had a podcast on the potential rise of Rivian. Hearken to that beneath in the event you missed it. For now, the information is that Rivian’s rise is on maintain, however let’s see if the corporate can bounce again stronger within the coming yr and doubtlessly stay as much as the expectations many EV followers have for the corporate.
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