- Rivian Q4 2023 deliveries fell 10% below targets.
- Rising interest rates triggered a price war in the EV market.
- Rivian increased Q4 production by 7.5%, surpassing its annual forecast.
Rivian, with its ambitious delivery targets for 2023, faced a setback as its Q4 deliveries did not align with the company’s fourth-quarter estimates. The challenges stemmed from both intensified competition in the electric vehicle (EV) market and the impact of rising interest rates on the affordability of EVs. These factors combined to create a challenging operating environment for Rivian during the final quarter of the year.
Rivian’s Q4 deliveries were 13,972 vehicles. This figure was 10% lower than the previous quarter and notably fell short of the anticipated 14,430.
High interest rates in the United States have led to an increase in monthly payments for electric vehicles. This has negatively impacted their affordability, which has triggered a price war initiated by the market leader, Tesla. Furthermore, Amazon.com, the largest investor in Rivian and its biggest customer, also refrained from taking deliveries during the fourth quarter. The company’s focus on the holiday season during this period has contributed to Rivian’s challenges in achieving its delivery targets.
“It’s likely that holiday schedules slowed down deliveries vs production,” said Vitaly Golomb, a Rivian investor and an electric and autonomous mobility expert.
In the face of these challenges, Rivian reported a silver lining, with production figures showing a promising trend. The automaker produced 17,541 vehicles in the last three months of 2023, marking a 7.5% increase from the prior quarter. This uptick in production resulted in an annual total of 57,232 units, surpassing Rivian’s forecast of 54,000.
Rivian has thus far abstained from slashing vehicle prices, instead banking on enduring demand. In a significant move, the company inked a deal last month for its electric vehicles with U.S. wireless carrier AT&T, marking the first such agreement after its exclusivity contract with Amazon terminated in November. Some market analysts expressed that the Rivian R1T pickup truck, with a starting price of $73,000, is unlikely to be significantly challenged by Tesla’s Cybertruck, which was introduced in late November 2023.
According to EV industry analysts, reservations for Rivian’s sporty new R1S SUV are now outselling the R1T by double the amount. The innovative new all-electric SUV is causing great excitement and will be delivered in 2024.
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