Written by Cláudio Afonso | LinkedIn | X
Rivian saw its U.S. sales decline year-over-year in November to an estimated 3,625 units, according to Motor Intelligence. While sales rose by 245 units from October, they fell 23% from the 4,717 vehicles sold in November 2023. Over the first two months of the fourth quarter, Rivian delivered approximately 7,005 R1 vehicles in the U.S., the firm estimates.
This follows the company’s disclosure in early October that third-quarter deliveries totaled 10,018 units, with production reaching 13,157 units. At the time, Rivian noted it was grappling with a production disruption caused by a shortage of a shared component affecting both its R1 and RCV platforms.
The supply chain issue became more pronounced through September and early October. Bloomberg recently reported that Rivian had miscalculated its supply and demand requirements with Essex Furukawa, its sole supplier of copper wires used in the EV motors. Sources cited by Bloomberg said Essex redirected its resources to other customers after Rivian’s demand signals fell short.
The EV maker has since identified alternative suppliers, but the cost of replacements at short notice has proven prohibitive. Following the constraint, the company lowered its 2024 production guidance, reducing its output target from 57,000 vehicles to a range of 47,000 to 49,000 units.
Despite these setbacks, Rivian has reaffirmed its annual delivery outlook, projecting low single-digit growth compared to 2023. The company expects to deliver between 50,500 and 52,000 vehicles this year. In 2023, Rivian delivered 50,122 vehicles, a significant increase of nearly 150% from the 20,332 units sold in 2022.
Last month, the EV maker secured conditional approval for a loan of up to $6.6 billion from the U.S. Department of Energy to finance the construction of its electric vehicle manufacturing plant in Georgia.
The EV maker, led by RJ Scaringe, plans to begin production in 2028 with an annual capacity of 200,000 vehicles. The second phase will enable Rivian to add another 200,000 units, bringing the total production capacity in Georgia to 400,000 vehicles per year.
Written by Cláudio Afonso | LinkedIn | X
