Electric vehicle manufacturer Rivian Automotive reported stronger-than-expected delivery numbers for the first three months of 2024, suggesting consumer interest in its electric SUVs and pickup trucks is bouncing back after a challenging period last year.
The California-based company announced Thursday that it shipped 10,365 vehicles during the January-March period, topping Wall Street predictions of 9,678 deliveries according to data from Visible Alpha. The automaker also maintained its annual delivery target of between 62,000 and 67,000 vehicles for the full year.
Industry experts believe rising fuel costs since conflicts began in Iran this February may be pushing more consumers toward electric alternatives, potentially benefiting companies like Rivian and market leader Tesla.
Rivian’s performance had struggled during the final quarter of 2023 when a federal tax incentive worth $7,500 for electric vehicle purchases ended in September, making their vehicles more expensive and removing a key purchasing motivator for buyers.
Manufacturing numbers also exceeded expectations, with Rivian producing 10,236 vehicles during the quarter compared to analyst estimates of 9,852 units.
The improved production figures come at a crucial time as the company prepares to launch its more affordable R2 model this spring. The entry-level version of the R2, with an expected starting price around $45,000, is scheduled to reach customers next year.
Company officials believe this new model will help them reach a broader range of customers and compete directly with Tesla’s popular Model Y Premium, which starts at $44,990.
Rivian also announced a major partnership with ride-sharing company Uber last month, where Uber plans to invest as much as $1.25 billion in the electric vehicle maker. Under the agreement, Rivian’s self-driving R2 SUVs will serve as autonomous taxis starting in 2028.
The company is scheduled to release its complete first-quarter financial results on April 30 following the close of stock market trading.
