Rivian Tells Staff EV Output May Be 24% More Than Forecast

Rivian Automotive Inc. has told employees that production of 62,000 electric vehicles is possible this year, according to people familiar with the matter, an increase from the production target it told investors earlier this week.

(Bloomberg) — Rivian Automotive Inc. has told employees that production of 62,000 electric vehicles is possible this year, according to people familiar with the matter, an increase from the production target it told investors earlier this week.

The Irvine, California-based company’s production master plan is to build as many as 62,000 units, executives told staff at an all-hands meeting on Friday, according to the people, who asked not to be identified discussing private information.

Rivian shares extended their gains after publication of the Bloomberg report, rising as high as $17.48, or 11%. They were trading at $16.84 as of 3:25 p.m. in New York.

The internal estimate is in line with the estimates offered by several analysts prior to Rivian’s initial forecast disclosure of 50,000 vehicles on Feb. 28. Wall Street had anticipated production of 62,797 units, according to the average of estimates compiled by Bloomberg.

Rivian’s stock fell by the most in nine months on the target the company disclosed then — and remains below where it traded before that announcement.

Read more: Rivian slides as EV production target, cash burn raise concerns

A Rivian spokesperson declined to discuss the new estimates, saying they were detailed at an internal meeting. They said the company gave its production guidance earlier this week during its earnings call.

Rivian is seen as a front-runner in a large pack of pure-play EV startups chasing market-leader Tesla Inc. Rivian’s 2021 listing was the sixth biggest in US history, but it stumbled as it tried to ramp up production due to parts shortages and other supply issues. Ultimately, Rivian ended 2022 falling just short of its own target of building 25,000 units that year.

The EV maker has three models, including two consumers models: the R1T pickup and R1S sport utility vehicle. Rivian also builds an electric delivery van for Amazon.com Inc., one of its largest customers and its biggest investor.

(Updates with shares move in third paragraph and additional details throughout.)

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