Electric-vehicle startup Rivian nearly doubled its production rate in the second quarter and says it is on track to hit its annual target of 25,000 vehicles
every day. GM expects production to speed up in the latter half of this year.
Rivian Chief Executive RJ Scaringe has blamed a shortage of parts, particularly semiconductors, for the production woes. The shortages led Rivian in March to slash in half its production forecast for 2022 to 25,000 vehicles. The company’s share price has declined around 75% since its public-market debut in November as Rivian’s production ramp-up fell short of initial projections.
The company has said increasing production volume is essential to stemming its losses, which ballooned to $1.6 billion in the January-March quarter from $414 million during the same period last year. Rivian has said it has sufficient cash to fund its business and expansion plans. The company had $17 billion in cash as of the end of March.
Thus far, Rivian has struggled to keep its factory running for more than a few days a week, but aims to run both a day and night shift, five days a week in the latter half of the year. RJ Scaringe, chairman and chief executive of Rivian Automotive Inc., has blamed a shortage of parts, particularly semiconductors, for the company’s production woes.The global semiconductor shortage has hampered production at car plants around the world, hitting established car makers and electric-vehicle upstarts alike. The world’s largest car maker,
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