Rivian Steps Up Profit Drive: R1S Production Set For Major Boost In Coming Quarters
Portfolio Pulse from Anan Ashraf
Rivian Automotive (NASDAQ:RIVN) plans to increase production of its R1S model to address a long backlog and customer complaints about wait times. The company will produce 70% R1S and 30% R1T models in the coming quarters. Rivian produced 13,992 vehicles in Q2, with 70% being R1S models. The company expects to produce 52,000 total units in 2023. Rivian's shares closed up 2.1% on Tuesday at $24.8 and rose 1.7% in Wednesday’s pre-market.
August 09, 2023 | 8:36 am
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POSITIVE IMPACT
Rivian's decision to increase R1S production could help address customer complaints and reduce backlog, potentially boosting sales and revenue. This could have a positive impact on the company's stock.
Rivian's decision to increase production of the more profitable R1S model could help the company address its backlog and reduce wait times, potentially leading to increased sales and revenue. This could have a positive impact on the company's stock price in the short term. The company's stock already showed a positive reaction to the news, closing up 2.1% on Tuesday and rising 1.7% in Wednesday’s pre-market.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100