Rivian started a tough year on a flat foot

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Rivian has a challenging twelvemonth up — and nan first 4th is disconnected to a tepid start.

The EV startup announced Tuesday that it built 13,980 vehicles and delivered 13,588 of them successful nan first 4th of 2024. Both of those figures are down from nan 4th fourth of 2023, wherever it built 17,541 and shipped 13,972.

Rivian did awesome that it plans to make astir nan aforesaid number of EVs arsenic it did successful 2023. So, if nan institution tin support apace of 2023 numbers it should meet  targets. Things won’t get easier from here. Rivian plans to unopen down its accumulation lines for weeks successful nan 2nd 4th truthful it tin make upgrades that should thief it little nan costs of building its EVs — different captious situation it must flooded if it hopes to stay a applicable subordinate and enactment successful nan crippled agelong capable to bring its next-generation R2 EVs to marketplace successful 2026.

Producing and trading vehicles, which includes nan R1S SUV, R1T pickup and 2 versions of a commercialized electrical van, has ne'er been nan company’s only challenge. Lowering nan costs of building its EVs is basal to profitability. The institution reported successful February that it was losing astir $43,000 connected each conveyance sold successful nan last 4th of past year.

All this uncertainty is coming astatine a clip erstwhile galore companies are having problem gathering nan lofty expectations that were group by booming EV income complete nan past 2 years.

Tesla reported its own very anemic first 4th sales connected Tuesday. Ford has scaled backmost its ambitions for its flagship EVs. In nan startup world, Lucid Motors said successful February that it only plans to build astir 9,000 luxury sedans this twelvemonth arsenic it continues to effort and found a market. Fisker has fallen beautiful overmuch level connected its face, trading only half of nan 10,000 electrical SUVs its statement shaper made successful 2023.