writer: Eric Walz
Rivian’s absolutely-electrical R1T pickup and R1S SUV are being constructed at the firm’s manufacturing facility in Normal, Illinois.
In an amended SEC submitting forward of its upcoming IPO, electrical truck maker Rivian shared a bit extra about its manufacturing forecasts and it’s not nice information for brand new prospects and people ready for his or her electrical automobiles to be delivered.
According to the amended SEC filing on Nov 5, Rivian mentioned it had had roughly 55,400 R1T pickups and R1S SUV pre-orders in the U.S. and Canada as of October 31, 2021. Each buyer paid a totally refundable deposit of $1,000 to reserve their Rivian car, however it additionally will be cancelled at any time and the deposit returned to the buyer.
But in its amended SEC submitting, Rivian wrote, “Based on our present manufacturing forecast, we count on to fill our pre-order backlog of roughly 55,400 R1 automobiles by the finish of 2023.”
Rivian mentioned its factory in Normal, Illinois is presently outfitted to produce a complete of 150,000 automobiles yearly, distributed between the R1 platform, which will likely be used to produce the R1T pickup and and R1S SUV, and the RCV platform, which will likely be used to produce electrical supply automobiles (EDVs) for Amazon and different industrial automobiles. However, so as to obtain most output, Rivian mentioned it would wish to run the manufacturing facility “at its full fee with a number of shifts.”
The present annual capability for the R1 platform and RCV platform is roughly 65,000 and 85,000 automobiles, in accordance to Rivian.
The firm mentioned it produced simply 104 R1T pickups throughout the final week of Oct 2021. It represented simply 8% of its goal R1 manufacturing fee of 1,310 EVs per day. When annualized, it equates to the present put in R1 platform capability of roughly 65,000 R1 automobiles yearly, assuming that the manufacturing facility is absolutely operational for 49.6 weeks per yr.
Rivian disclosed in its amended securities submitting that it plans to ship 1,000 R1Ts by the finish of the yr.
For Rivian’s industrial electrical car platform, the firm’s goal is to produce roughly 1,710 industrial automobiles every week, which when annualized equates to an annual capability of roughly 85,000 automobiles.
Rivian is backed by e-commerce big Amazon. The online retailer ordered 100,000 fully-electric delivery vehicles from Rivian that it plans to add to its fleet over the subsequent decade. The cope with Amazon represents one of the largest single orders ever for electrical automobiles. The deal consists of supplying Amazon with 10,000 automobiles annually over the subsequent decade.
Rivian nevertheless, expects that its car manufacturing fee will constantly enhance. The firm’s targets are to improve the pace of the meeting line and rent and practice new staff so the manufacturing facility can function with extra shifts. Rivian alos plans to improve the fee of bought supplies from its provide chain.
If Rivian meets its targets, the firm expects to obtain an annual car manufacturing fee of up to 150,000 automobiles by late 2023. Which implies that new reservation holders hoping to take supply of an R1T pickup by spring 2022 might need to wait one other 18 months.
For some loyal followers of Rivian, the wait is perhaps price it although as the buzz surrounding the progressive R1T electrical pickup has been rising. Rivian nevertheless, is going through some of the identical challenges its principal U.S. rival Tesla confronted with the launch of the Model 3 in 2017.
Customers additionally had to wait an extended wait time for his or her Model 3 sedans, as Tesla faced unexpected production delays in 2017 after the mass-market EV first entered manufacturing at its manufacturing facility in California.
Rivian’s R1T pickup truck was initially scheduled to be delivered to prospects beginning in June, however later pushed deliveries to July, then once again to September.
In an e-mail despatched to R1T reservations holders in July, Rivian CEO RJ Scaringe cited a number of components for the delays. Among these are the world chip scarcity which is affecting auto manufacturing worldwide. The Rivian CEO additionally cited the pandemic, which he mentioned had a compounding impact on development progress at its manufacturing facility in Normal, Illinois.
Rivian’s amended SEC submitting nonetheless paints an optimistic image of the firm’s future although.
“We consider the mixture of our deep concentrate on addressing local weather change, constructing compelling merchandise, and delivering a superior buyer expertise will allow Rivian to drive adoption and buyer loyalty, powering our continued progress, ” Rivian wrote.
Rivian additionally raised its worth targets when the firm launches its a lot anticipated IPO later this month. Rivian plans to supply 135 million shares priced between $72 and $74, up from its preliminary goal of $57 to $62.
At the high finish of that present vary, and assuming the underwriters train an possibility to buy one other 20.25 million extra shares, Rivian could be price round $65 billion, which is shut to the market cap of Ford Motor Motor Co, which can also be a backer of Rivian. Ford’s market cap is simply over $78 billion and the automaker holds a 12% stake in Rivian.
Rivian expects to elevate up to $9.8 billion in its upcoming IPO.