The increase in production at Rivian, a young manufacturer of EVs, coincides with the precarious economic situation. Economic uncertainty is forcing companies to take tough decisions now.

Companies, especially in the technology sector, have already announced cost-cutting measures, such as slowing or freezing the pace of hiring.

Some companies have gone so far as to turn down job offers to candidates, while others are considering mass layoffs.

Rivian, considered one of Tesla's most serious rivals among young manufacturers, has made some tough choices to enable it to operate without too much damage in the coming months.

RJ Scaringe, the chief executive of the Irvine, Calif., carmaker, announced it would cut 6% of its 14,000 employees.

In an email to group employees, he said inflation, rising raw material prices and rising interest rates are making it difficult for companies to raise fresh money and finance their investments.

Scaringe said "This decision will help align our workforce to our key business priorities, including accelerating consumer and commercial vehicle programs.

Scaring said the layoffs will not affect manufacturing operations at Rivian's current factory. Employees will get 14 weeks of pay severance, health care and additional benefits.

The company is expected to provide an indication on August 11 of how these difficulties will affect its business in the second half, when it reports second-quarter results.