Electric vehicle (EV) manufacturers Rivian and Tesla both failed to meet production estimates from analysts as the industry struggles with slowing demand.
Rivian produced 13,980 vehicles in the first quarter of 2024 and delivered 13,588, while Tesla delivered around 386,810 and produced 433,371, the companies announced Tuesday. Analysts at Visible Alpha predicted that Tesla would deliver 454,200 vehicles and that Rivian would deliver 14,250 units, according to Reuters. (RELATED: Prices In Key Insurance Sector Could Climb Even Higher After Baltimore Bridge Disaster)
Production for EVs has consistently outpaced demand as consumers fail to adopt the product, with total vehicle market share for EVs increasing from 3.1% in January to just 3.6% in December 2023, while the share of U.S. inventory jumped from 2.8% to 5.7% in that same time frame.
Amid the harsh market environment, car companies Bentley, GM, Ford, Mercedes-Benz and Honda have all backed off previously made EV goals in the past year.
Tesla’s deliveries are down around 20.2% from the previous quarter and 8.5% from a year ago, with the company warning in January that sales growth would be “notably lower” as it moves to produce a new electric vehicle model, according to Reuters. The production miss sent shares falling 6.5%, adding to the nearly 30% slide that has occurred for the company’s stock this year.
Rivian production numbers were below the 17,541 vehicles it produced in the fourth quarter of 2023, but are up 50% compared to last year, according to Reuters. The decline in production in the first quarter was less than the company’s own expected decline of 10% to 15% in February.
Biden’s Emissions Rule For Trucks Could Crush Small Companies And Jack Up Costs, Truckers And Supply Chain Experts Say https://t.co/Y18vlz5F2F
— Daily Caller (@DailyCaller) April 2, 2024
Not all analysts were as optimistic about Rivian’s production in the first quarter, with an average calculated by Bloomberg predicting 13,817 vehicles, lower than the total produced.
Top American car manufacturers Ford and General Motors have recently resorted to cutting staff and shifting efforts away from EV production and development due to poor market performance. Ford lost $4.7 billion on EVs in 2023, while GM has reported a $1.7 billion loss in the production and sale of its EV line.
The Biden administration has put in place a number of measures to incentivize EV production and adoption, including a $7,500 tax credit per vehicle, in hopes of lowering costs for consumers. The president has also put in place tailpipe emission standards that will effectively require 67% of all light-duty vehicles sold after 2023 to be electric or hybrid.
Rivian declined to comment to the Daily Caller News Foundation. Tesla did not respond to a request to comment.
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.