Overview

• Rivian has defied expectations, improving its gross profit per vehicle and upping production guidance to 54,000 vehicles in 2023; this comes despite Tesla CEO Elon Musk's prediction of bankruptcy for the EV maker.
• Rivian's improving financial status is owed to factors such as higher average selling prices, driven due to new orders, and significant improvements in material costs and plant upgrades.
• Off the back of rising demand for its vehicles, Rivian also plans to introduce new technologies to its R1 platform in 2024, which it believes will further reduce material costs and improve its margin profile.
• In stark contrast to Rivian's success, EV rival Lucid fell short, cutting its production forecast and missing expectations across the board, leading to its shares dropping by 4%.
• Rivian has also ended its exclusivity deal with Amazon, allowing it to sell its electric vans to a wider customer base, further enhancing its growth potential.