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Rivian reported its third quarter gross sales right this moment, they usually weren’t good. Extra particularly, deliveries had been right down to 10,018 models in Q3 2024, from 15,564 in Q3 2023 (YoY) and 13,790 in Q2 2024 (QoQ). Although, in accordance with Rivian, the difficulty shouldn’t be client demand. At the least, client demand for its EVs was not talked about. The difficulty Rivian highlighted was a provide chain drawback.
“Rivian is experiencing a manufacturing disruption as a consequence of a scarcity of a shared part on the R1 and RCV platforms. This provide scarcity affect started in Q3 of this 12 months, has turn out to be extra acute in current weeks and continues. Because of the provision scarcity, Rivian is revising its annual manufacturing steering to be between 47,000 and 49,000 automobiles,” the corporate writes.
There’s no steering on when this provide chain drawback might be resolved. Nonetheless, Rivian did reiterate the identical full-year steering it had offered beforehand. “The corporate can be reaffirming its annual supply outlook of low single digit progress as in comparison with 2023, which it expects to be in a variety of fifty,500 to 52,000 automobiles,” Rivian writes.
Apparently, regardless of the provision chain drawback, Rivian produced a couple of thousand extra models than it delivered — 13,157 versus the aforementioned 10,018, respectively. Is that only a matter of pure delays getting vans and SUVs to prospects, or is Rivian additionally going through client demand challenges?
One factor I’m questioning is how a lot Rivian could be going through an Osborne impact drawback. The R1T and R1S are interesting automobiles to many consumers, however the not too long ago introduced 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 prospects may need purchased an R1S or R1T as a substitute if not for the launch of the R2 and R3?
In the meanwhile, the R1T begins at $70,000 and the R1S begins at $76,000. Each are costly automobiles. Sure, one would suppose that even at these costs, Rivian might attain 50,000+ annual gross sales, however who is aware of? The market has been seeing ups and downs, and an increasing number of consumers have gravitated over to new electrical automobiles from legacy auto manufacturers.
Maybe Rivian shouldn’t be going through demand points in any respect and it’s all simply what the corporate stated in its press launch for traders right this moment — 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, similar to Tesla’s success has been closely depending on the lower-cost Mannequin 3 and Mannequin Y, somewhat than the low-volume Mannequin S and Mannequin X (which have related quarterly gross sales to the Rivian R1S and R1T). We not too long ago had a podcast on the potential rise of Rivian. Take heed to that under in case 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 12 months and doubtlessly reside as much as the expectations many EV followers have for the corporate.
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