Whereas Rivian is operating behind the tempo it wants to fulfill its 2023 manufacturing estimate, the corporate says it is laying the groundwork for higher numbers for the remainder of the 12 months.

In a Could 1 shareholder letter, CEO RJ Scaringe mentioned the EV maker has produced about 35,000 autos because the begin of manufacturing, together with the R1T, R1S and two sizes of vans for Amazon, the EDV500 and EDV700.

“Our 2023 manufacturing steering of fifty,000 autos stays on observe, representing a one hundred pc enhance from 2022,” Scaringe mentioned within the letter. “Now we have deepened and prolonged {our relationships} with key suppliers to assist our ramp.”

The automaker can be engaged on its subsequent car platform, known as R2, which is being designed for extra cheap fashions. Rivian is constructing a plant in Georgia to make R2 autos beginning in 2026. The corporate’s most cheap car presently is the bottom R1T at $74,800 with transport.

“Constructed from the bottom up, our Georgia plant will leverage all of the learnings from our Regular, Illinois, campus and is predicted to have 400,000 items of annual manufacturing as soon as it is working at full capability,” Scaringe mentioned within the shareholder letter.

Some monetary analysts have questioned whether or not Rivian could have sufficient money to fund the brand new plant and its manufacturing ramp-up, except it sharply brings down prices. The corporate reported a internet lack of $6.75 billion for full-year 2022.

Rivian introduced job cuts in February totaling 6 p.c of its work drive, or about 840 individuals. It additionally minimize jobs in July 2022.

Rivian shares rose 3.6 p.c on Friday, Could 5, to shut at $13.41. That is down virtually 90 p.c from its first day of buying and selling in late 2021.