In recent weeks, Rivian also faced a revolt from customers after the company said it would charge them more to deliver vehicles they had preordered. Rivian backtracked, saying it would honor the original price.
Difficulties in obtaining materials used to make Rivian’s electric trucks, SUVs and vans has slowed production at its Normal, Illinois plant, CEO RJ Scaringe said during a Thursday conference call.
Rivian now expects to make 25,000 vehicles in 2022, although it has the capacity to make 50,000, he said.
Shortages of semiconductors, wire harnesses and printed circuit boards have been the most problematic, he said.
“Our production lines are sitting idle far more often than we’d like because we’re waiting on components,” he said.
Scaringe told analysts that half the customers who canceled their orders after the price hike had restored their reservations.
Consumer interest in Rivian’s EVs remains high, as its backlog of orders has increased this year, Scaringe said. That expected strong demand is the primary reason Rivian wants to build a second factory in Georgia.
Work on Rivian’s plant is slated to start this spring at a 2,000-acre site in Morgan and Walton counties, about 45 miles east of Atlanta.
Cox Enterprises, owner of The Atlanta Journal-Constitution, owns a 4.7% stake in Rivian and supplies services to Rivian. Sandy Schwartz, a Cox executive who oversees the AJC, is on Rivian’s board of directors and holds stock personally. He does not take part in the AJC’s coverage of Rivian.