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What is the biggest problem for Rivian?

One of main problems standing or standing in front of you Electric car company was specifically associated with the production increase production rate. this is that main problem who is in front Rivian Auto Rg-Aaccordingly Luc Olinga in The Street.

Increasing production is the hurdle standing in the way between an automotive startup and a mass automaker. It’s the road to survival for all EV newbies.

Increased production that consumes a lot of money, almost led to bankruptcy Tesla. From 2017 to 2019the Austin, Texas based company was located on the brink of collapse due to difficulties in managing the increase in production capacity of Sedan Model 3your base vehicle.

“The next we came in was about a month. The Model 3 ramp was a long time, from mid-2017 to mid-2019, of extreme stress and pain. Production and logistics hell.”called Elon Musk, CEOon November 3, 2020.

a long nightmare

This is a difficult time in Tesla history symbolized by Joe Rogan’s podcast interview with Musk in September 2018. During this interview, the quirky entrepreneur and his host smoked live marijuana.

Today Tesla has become a giant The ninth most valuable company in the worldwith a Market cap of $571 billion at the last check.

The decision about Rivian is not yet clear. One of the dangers is that not all EV newbies are Tesla and the circumstances are no longer the same. When Tesla struggled to mass-produce vehicles, electric vehicles were not the focus of the auto industry.. Today the competition is tougher Because now every old car manufacturer offers an electric vehicle and has other models in the pipeline.

If Rivian started ramping up production last yearThe question was whether the Irvine, California-based group It would be able to overcome the traditional problems related to mass production.

The company, like its competitors, faced this Disruptions in supply chains due to the coronavirus pandemic. Added to this in February 2022 the Russian war in Ukraine, what caused one Increase in raw material costs necessary for the development of the battery.

Unfortunately, things didn’t go as Rivian had hoped. The car manufacturer that makes it R1S SUV, R1T pickup truck and IT truck at its Normal, Illinois facility Halved original production target last year to 25,000. Ultimately, the company failed to meet this goal and ended up producing 24,337 vehicles.

Significantly reduced delivery time

At the beginning of the year, the group wanted to be careful. Even though he said so would ship 50,000 units in 2023, Rivian said internally that production could exceed that number 62,000 unitsbut at the same time refused to make it official.

Instead, the company cautioned in its first-quarter earnings release on May 9, “We remain convinced that…” The supply chain will continue to be the main limiting factor in production from our normal facilities. Our team continues to work to introduce new technical design changes and key technologies that will come into effect in the second half of 2023 to help mitigate expected supply chain constraints.”

It looks like the skies are finally clearing up over Rivian’s head, because he just sent that indicates that you are beginning to see the end of these production problems. In fact, the automaker did shortened the delivery time of the R1T. A consumer who orders this van today You should receive it in 14 days or lessdepending on the location.

“Rivian’s production ramp-up continues, which means customers can in some cases receive an R1T in 14 days or less,” said a spokesman for TheStreet in an emailed statement. “Anyone who lives in the service area of ​​a Rivian Service Center has access to the R1 Shop, where they can browse through ready-to-use configurations. This is all part of our focus on increasing production and improving delivery time.”

Previously customers had to do this Wait between one and four months.

However, Rivian warns that the Delivery window estimates are not based solely on location. Other factors such as Determination of an initial pre-order or reservation date, the way the car manufacturer bundles vehicle production at its plant, delivery availability and changes in customer preferences affect the delivery date.

Rivian Auto Rg-A closed down at $13.47 on Friday after a series of small candles throughout the week and the 70-period moving average remains above the last few candles.

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