Rivian Says On Track To Meet 2022 Output Target After Stock Drops 9%

Rivian Automotive Inc RIVN said on Tuesday it is on track to make 25,000 electric vehicles this year, sending the shares of the electric vehicle company higher after the bell.

What Happened: Irvine, California-based Rivian said it had made 2,553 vehicles and delivered 1,227 cars in the first quarter. 

The electric vehicle startup, backed by Amazon.com Inc AMZN and Ford Motor Co F, had fallen short of its target of making 1,200 electric vehicles in 2021 and managed to produce just 1,015 vehicles and delivered 920.

Rivian has a factory in Normal, Illinois, where it currently makes the R1S sport utility vehicle, R1T pickup truck, and delivery vans. The plant currently has an annual capacity of 150,000 vehicles, which is set to increase to 200,000 by 2023. 

The EV maker is setting up another plant near Atlanta which is expected to have an annual capacity of 400,000 vehicles and will open in 2024.

See Also: Rivian Missed 2021 Production Targets And Is Now Reportedly Bumping Up Prices: Here's Why

Why It Matters: As a Tesla Inc TSLA competitor, Rivian is among a host of EV startups that went public last year without first beginning deliveries to customers.

Shares in the company have however been under pressure since the start of this year after CEO RJ Scaringe said Rivian was delaying deliveries of its 400-mile R1T pickup truck to 2023.

Last month Rivian faced a severe online backlash after announcing price hikes by up to 20%, forcing the EV maker to walk back the price hikes.

Price Action: Rivian stock closed 9.3% lower at $42.2 a share on Tuesday and was up 1.3% in after-hours.

Photo courtesy: Rivian