Electric vehicle manufacturer Rivian Automotive Inc. is making progress in the production of its debut models, namely the R1S SUV and R1T pickup truck. While the company experienced manufacturing setbacks, it is on target to double its production volume this year to reach a total output of 50,000 vehicles. Rivian also manufactures an electric van for Amazon.com Inc., one of its largest shareholders.
Rivian's CFO, Claire McDonough, recently reported at a Deutsche Bank AG conference that the R1S SUV is on track to overtake the R1T pickup as the company's highest production volume model this quarter. According to McDonough, the SUV comprises around 70% of the company's pre-orders. The increased output of the SUV is due, in part, to Rivian's work around the shortage of semiconductors in the global market. The company has been able to expedite production by developing a two-motor powertrain known as Enduro in-house. The Enduro powertrain supplements the four-motor design made by Robert Bosch GMBH, which has faced backlog issues.
McDonough stated that the Enduro ramp-up is slightly ahead of plan, allowing Rivian to begin output of two-motor SUVs in recent weeks. The R1S is currently one of the few three-row battery-powered SUVs available on the US market, alongside Tesla Inc.'s Model X and Model Y. However, large automakers such as Ford Motor Co., General Motors Co. and Toyota Motor Corp. have announced plans to enter the segment.
In the stock market, Rivian's share price rose 3.4% to $15.24 in regular trading on Thursday, and the company has produced a total gain of 17% this year. As the company continues to ramp up production of its electric SUV, it is positioning itself to become a major competitor in the rapidly expanding market of electric vehicles.