Shares of Rivian (NASDAQ:RIVN) stock are in full focus following comments from CFO Claire McDonough at the Bank of America Securities Summit. First, she commented that the electric vehicle (EV) company expects to achieve profitability by the end of 2024, which will be driven by the company’s three vehicles: the R1T, R1S and electric delivery van ( ).
In addition, Rivian’s backlog orders before the price hike in March are expected to be fulfilled by mid-2023. The exact number of backlog orders was not disclosed, although it will extend “well into 2024.” The current prices of the R1 vehicles will likely remain constant for the time being.
For 2023, the automaker has guided for production of 50,000 vehicles. However, in an internal meeting with employees, Rivian stated that it is eyeing production of 62,000 vehicles, which is in line with the average analyst estimate of 62,979 vehicles.
When asked, a Rivian spokesperson stated that the 62,000 figure was taken out of context and declined to elaborate further. At the summit, McDonough disclosed that Rivian has a goal of producing 85,000 R1 vehicles annually by 2026.
At the same time, McDonough noted that a possibly more affordable vehicle is in the works. Let’s get into the details.
CFO Claire McDonough Comments on RIVN Stock
Rivian had previously announced its plans to build a new generation of trucks under the R2 platform. However, details on the platform are scarce, although it is speculated that production will begin in 2025 or 2026 with the first truck carrying a starting price of $40,000.
McDonough did disclose that Rivian has a goal of producing 200,000 R2 trucks by 2026. The next production goal would seek to double that figure, although she did not provide a timetable. McDonough added that Rivian will seek volume and global sales for the truck while competing against other luxury volume sellers, such as Tesla’s (NASDAQ:TSLA) Model Y.
Finally, it was disclosed that Rivian will seek to join the U.S. Federal Charging Fund. Inclusion in the fund will allow Rivian to capitalize on federal incentives and will also open up Rivian’s charging network to other EV companies. Teslarati stated that the government could subsidize as much as 80% of the cash required for charging installation through the fund.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.