Rivian Automotive (RIVN.O), a manufacturer of electric cars, announced on Monday that third-quarter deliveries exceeded market forecasts due to increased production to keep up with the steady demand for its pickup trucks and sport-utility vehicles (SUVs).
The Irvine, California-based business announced that it was scheduled to build 52,000 vehicles in 2023, up from 50,000 vehicles when supply-chain constraints started to clear in August.
The Rivian results come amid worries that the U.S. market for electric vehicles may be slowing down due to increasing financing rates. As a result, rivals like Tesla have reduced their prices and offered promotions.
Rivian, a manufacturer of R1T pickup trucks and R1S SUVs, delivered 15,564 cars in the three months ending September 30. This was higher than Visible Alpha’s projection of 14,740, a 23% increase from the previous quarter.
However, according to Chris Pierce of Needham & Co, some investors believed that the delivery beat was smaller than anticipated compared to Rivian’s performance in the first half, which caused its shares to trade slightly lower.
At its site in Normal, Illinois, the EV manufacturer manufactured 16,304 vehicles, up from 13,992 in the second quarter. To meet its full-year goal, Rivian must only produce slightly more than 12,300 automobiles in the current quarter.
According to Cox Automotive, average EV retail prices have dropped from a high of over $70,000 a year ago to $53,376 in July 2023 due to price reductions by Tesla to increase demand and replies from rivals.
Rivian has refrained from lowering its prices. To lessen its reliance on suppliers, it has decreased costs and switched to internal production of Enduro powertrains.
The U.S. EV market, one of the fastest-growing EV markets, is showing signals of growth despite a pause, according to market research company Canalys Research.