Rivian Surpasses Delivery Expectations as Supply Chain Issues Ease: Rivian (RIVN.O) reported exceeding analysts’ expectations for its fourth-quarter vehicle deliveries, driven by a resolution of a component shortage that had previously hindered production. The company delivered 14,183 vehicles in the final quarter of 2024, a 42% increase from the previous quarter, surpassing the consensus estimate of 13,472. This was the highest number of deliveries for Rivian in over a year.
The shortage of a shared component for its R1 SUV, R1T pickup, and delivery vans had forced Rivian to reduce its production targets in October. However, with the supply issue resolved, the company was able to produce 12,727 vehicles in Q4, exceeding estimates of 11,398 units. Rivian’s total production for 2024 reached 49,476 vehicles, slightly lower than the previous year but above the company’s revised target.
The positive delivery performance helped lift Rivian’s stock by nearly 19%, though the company’s stock had dropped over 40% in 2024. Rivian’s backer, Amazon, reduced deliveries in Q4 due to a focus on its holiday sales, yet steady demand for Rivian’s electric vehicles continues to be a key driver.
In a bid to improve margins, Rivian reduced costs by renegotiating supplier contracts and overhauling its manufacturing processes. The company also secured a significant $5.8 billion investment from Volkswagen as part of a technology joint venture.
Despite market pressures, including higher borrowing costs and slowing demand for electric vehicles, Rivian remains focused on its competitive strategy, positioning itself well for growth in 2025. The company will report its full fourth-quarter financial results on February 20.
