UPDATE: Rivian falls short of production targets as electric vehicle manufacturer transitions to revised supply chain systems

UPDATE: Rivian falls short of production targets as electric vehicle manufacturer transitions to revised supply chain systems

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April 2 (Reuters) – Rivian Automotive missed market estimates for quarterly production on Tuesday, impacted by the electric vehicle maker’s decision to switch to new suppliers of new materials as it seeks to cut costs and improve its efficiency.

The Amazon.com-backed company produced 13,980 vehicles in the first quarter ended March 31, while eight analysts surveyed by Visible Alpha expected about 14,250 units.

Shares of the company fell about 1% in premarket trading.

The quarterly production figure was up about 50% year-on-year, but was lower than the 17,541 vehicles produced in the previous three months.

Rivian, the maker of the R1T pickup trucks and R1S SUVs, reaffirmed its annual production guidance and is also planning a one-week production shutdown in the second quarter to modernize its production line.

The company reported first-quarter shipments of 13,588, a sequential decline of about 3%, lower than the 10% to 15% drop it forecast in February.

The delivery figures, which fell at a slower pace than the company expected, will provide some respite from investor concerns about a slowdown in demand for electric vehicles as consumers seek more affordable hybrid vehicles in a uncertain economy.

In the United States, buyers have been opting for hybrid vehicles rather than pure electric vehicles in recent months, to avoid higher ownership costs and also because some models have lost their eligibility for credits. federal taxes.

The company said it produced a few thousand additional vehicles that were not included in this quarter’s numbers because it is waiting for a part it hopes to receive in April.

The higher prices of battery vehicles compared to gasoline cars have prompted electric vehicle manufacturers to introduce more compact and cost-effective models to attract buyers.

Rivian unveiled its smaller, cheaper R2 electric SUVs and crossovers last month and said it would produce the R2 at its existing U.S. factory, saving the company more than $2 billion. (Reporting by Zaheer Kachwala in Bangalore; editing by Tasim Zahid and Shailesh Kuber)

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