Rivian Automobile Inc. “is making progress” in ramping up electric vehicle production at its Normal, Ill., assembly plant and aims to take 10% market share of the electric vehicle market by 2030, CEO RJ Scaringe said Thursday.
“We are absolutely making progress,” he told a Wolfe Research conference on the drive to increase vehicle production. “The factory is starting to get off to a good start.”
Rivian Shares closed 10.7% higher at $63.71.
Scaringe, responding to a question about how big Rivian could become by 2030, said the company had the brand position “to build a portfolio…to allow us to really work on building a position 10% market share in the EV space.”
He called the global shortage of semiconductor chips the “most painful” constraint in the push to increase production. The California-based startup produced 1,015 vehicles last year, falling short of its target of 1,200 due to supply chain constraints.
Rivian’s stock tumbled after it described in its first quarterly earnings report as a public company its struggles with manufacturing its R1T pickup truck and R1S SUV. It also has a contract to build 100,000 electric delivery vans by 2025 for Amazon.com, which has a 20% stake in Rivian.
In December, Scaringe linked production challenges to global supply chain constraints, the COVID-19 pandemic, a tight labor market and near-term issues in building electric battery modules. .