Rivian expects to fall a few hundred vehicles short of its production target of building 1,200 vehicles in Illinois this year. As of December 15, Rivian has produced 652 of its consumer pick-up trucks and SUVs and delivered 386.
Rivian CEO RJ Scaringe said on the automaker’s first earnings call as a public company that global supply chain issues, a tight labor market and covid have all resulted in production challenges.
Scaringe said that with Rivian’s vehicles requiring 2,000 parts, even a shortage of 0.1% of parts can slow production.
Rivian’s new plant on nearly 2,000 acres in Georgia will eventually employs 7,500 workers, according to Rivian. The automaker, which currently has more than 10,000 employees, expects to start production of vehicles there in 2024. Scaringe said that Rivian evaluated sites across the country looking for a location that had access to talent and proximity to suppliers.
Rivian lost $1.2 billion in its first quarter as a public company, compared with losses of $288 million in the same period a year before.
“It’s critical that we don’t starve them of vehicles,” Scaringe said.
