Rivian Maintains Production Estimates. Here's Why That's a Big Deal
After much of the hype died down from Rivian Automotive's (NASDAQ: RIVN) initial public offering last November, its stock plummeted from levels that had valued it at more than both Ford and General Motors at the time. Investors soon realized the realities involved in starting an electric vehicle company from scratch.
Earlier this year, Rivian told investors that it would be limited to producing 25,000 vehicles for the full year even though it already had equipment and processes in place at its Illinois factory to support the production of 50,000. Other EV start-ups were lowering projections as well due to supply chain disruptions. Many wondered whether the company would slash projections again in its second-quarter report, but what it said boosted investor confidence instead.
A lot of factors have made investors wary of early-stage EV manufacturers recently. The macroeconomic environment presents many obstacles, including rising raw material costs, supply chain disruptions, and consumers reining in spending. Companies like Rivian that are just starting to ramp up production and build a customer base are particularly affected.
Source Fool.com
