As Rivian Raises the Bar with an Interval EV Production Goal, R1T and R1S Production will be Boosted

Rivian's New Goal

Rivian's Q4 and full-year 2022 earnings decreased this week, falling short of expectations due to missed production targets. According to Trade Algo, the company informed its staff that it can produce more EVs this year.

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This year, 62,000 EVs might be manufactured. As the quarter proceeds, Rivian will scale up production on its second shift at its Illinois manufacturing site, increasing the output of the R1T and R1S.

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Over the previous few months, the EV manufacturer has faced many challenges.
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Employee Layoffs

Hundreds more employees will be put off, the company announced. As you may remember, the company lay off more than 300 workers in California last October. The action is being taken to help save money as it gets ready for a potential pricing war throughout the sector.

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With plans to increase manufacturing of the EDV delivery vans and R1 trucks for Amazon as well as the creation of its future smaller R2 vehicle platform.

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The company promised customers that the layoffs would not have an impact on the manufacturing jobs at its Illinois facility.

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In late 2021, the company successfully went public with an initial offering, raising close to $12 billion. Nevertheless, since then, the value of their shares has decreased by roughly 90%, prompting the EV manufacturer to reconsider its development ambitions as it strives to become profitable.

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Recent price reductions by Ford Motor Company, Tesla, and other automakers raised worries that rising industry rivalry would drive other automakers to lower the price of their EV models.

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Recalls

Customers filed recalls with the National Highway Traffic Safety Agency (NHTSA) last week for the company's 2022 R1T and R1S.

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Rivian will execute a voluntary recall affecting 12,700 Rivian EVs due to a sensor in the passenger seatbelt system that may result in a decreased or full lack of deployment of the passenger airbag.

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The recall concerns many 2022 Rivian R1T and R1s EVs, and letters informing potential EV owners of the recall will be mailed on April 8; nevertheless, such alerts are already being sent through email.

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This demonstrates that, while ramping up production, Rivian is still a relatively new EV startup aiming to establish a foothold in scaled EV production.

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