More than a year after production started.
Rivian was caught up in some trouble this week after it was announced that the American EV maker failed to secure the rights to sell cars in Canada. These initial reports were wrong, as Transport Canada only needed supplemental information before granting Rivian the rights to import and sell cars in Canada.
This is big news for the brand, which suffered an extremely tough 2021 and 2022. Like many other manufacturers, it was plagued by the semiconductor shortage, resulting in production delays. Last year Rivian had hoped to build and deliver 1,000 vehicles. This year it wants to hit 25,000 units, and these recent developments are an indication that Rivian is on track. It would not apply to sell in Canada if it didn't have stock.
Once Rivian's plant is running at full capacity, it will be able to produce 200,000 vehicles per year. The manufacturer is still a long way off that target, as the semiconductor shortage is only expected to stabilize at the end of 2023.
Until then, Rivian is working hard to meet the 90,000 reservations it currently has for the US and Canadian markets. The 90,000 figure appears to be stable for now. There were unconfirmed reports of Rivian losing thousands of reservations after a recent price increase, but orders ramped back up after it was revealed that the R1S would make its debut shortly.
Rivian also went out of its way to help reservation holders get the $7,500 tax rebate, which none of its vehicles qualify for under the new Inflation Reduction Act.
Rivian went public late last year when the company took its first big knock. The company was valued at over $77 billion, but the paperwork it was required to file revealed that it lost $1 billion during the first half of 2021 alone.
It's worth keeping in mind that Rivian only started production and deliveries in September 2021, which means it had zero income. Rivian is in better shape but is still not immune to the current economic climate. In mid-July, it announced that it was stopping hiring new employees and that layoffs were imminent.
These layoffs were required to keep the company financially stable, and the tactic seemingly worked because here we are months later, and Rivian will officially start exporting to Canada.
Rivian's success over the last two years was enough to impress the oldest brand in the business. Mercedes-Benz and Rivian recently signed a memorandum of understanding to develop an all-new electric van, which is something Rivian has experience with.
Amazon was one of the earliest Rivian investors, and it poured millions into the company with the understanding that it would produce thousands of EV delivery vans for the famous online shopping conglomerate.