Reuters Rivian Automotive raised its production forecast for the full year by 2,000 vehicles to 54,000 units on the back of sustained demand for its trucks and SUVs on Tuesday, sending its shares up 4 in volatile afterhours trading.

Rivian39;s upbeat forecast is a small positive for an industry reeling from the double whammy of high inflation that has dulled buyer appetite and price cuts at market leader Tesla to stimulate demand.

Last month, Tesla CEO Elon Musk said he was concerned about the impact of high interest rates on car buyers, echoing caution from General Motors and Ford amid fears of a slowdown in demand.

Smaller rival Lucid LCID.O cut its production forecast on Tuesday to prudently align with deliveries, sending its shares down 4. It now expects to produce 8,0008,500 vehicles this year, down from an earlier projection of more than 10,000.

I39;m actually surprised to be honest at how much we39;ve seen others pull back, Rivian Chief Executive RJ Scaringe said in an interview with Reuters. I think it39;s going to create, unfortunately, somewhat of a vacuum of products in the market.

He said that shifts in buying behavior beyond the tail end of 2023 were not influencing Rivian39;s investment strategy for cheaper R2 vehicles that the company expects to launch in 2026.

After multiple quarters of supply chain problems, Rivian may be starting to turn a corner, some analysts have said. But the company shocked investors with an earlierthanexpected bond issuance…