EV manufacturer Rivian Automotive RIVN provided insights into the numerical breakdown of R1 vehicle production during the second quarter and outlined its upcoming production strategy.
What Happened: During the second quarter, CEO R.J. Scaringe revealed that the majority of R1 vehicles produced by the company were R1S models. This marks a shift from the previous trend, where the R1T, priced slightly below the R1S, had been responsible for the majority of vehicles produced each quarter.
The pattern will continue for the next quarter or two to address the “really long” backlog and the biggest customer complaint of wait time associated with getting a Rivian, Scaringe said.
Production will be segmented as 70% R1S and the remaining 30% R1T to address the issue, the CEO added.
Talking about the backlog at hand, Scaringe said that the company is ‘very confident’ in its continued backlog which it sees expanding well into 2024.
“We’re quite bullish on the continued strong demand we have for our products,” he said.
Why It Matters: Rivian produced a total of 13,992 vehicles in the second quarter, of which 70% of the R1 units produced were R1S vehicles. While the R1S is priced at $78,000, R1T starts at $73,000. The R1S is also more profitable than the R1T.
For 2023, the company expects to produce 52,000 total units.
Price Action: Rivian shares closed up 2.1% on Tuesday at $24.8 and rose 1.7% in Wednesday’s pre-market, according to data from Benzinga Pro.
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Read More: Rivian CEO Speaks Up About NACS Charging Pact: Dollars Flow To Tesla, Data Stays Put
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