Rivian’s losses rise to $1.7 billion as production ramps up

Rivian CEO R.J. Scaringe said in a phone call with investors that they weren’t able to fully utilize their product line during “the big part” of the second quarter.

“We weren’t even able to work a full shift due to component deliveries,” Scaringe said.

Rivian expects supply chain shortfalls to continue limiting its growth, but it’s confident enough of an improved outlook that it said it plans to add a second shift at its Normal, Illinois plant later this year. Scaringe expressed confidence that the pace of production will continue to rise, as more vehicles coming out of the plant’s doors is critical to achieving profitability.
Rivian, which has strong outside support Amazon (AMZN), there were 98,000 pre-orders in the US and Canada at the end of June, and pre-orders have increased this year. Most new buyers of the R1T pickup truck have never owned a pickup truck before, according to the automaker.

Huge losses are in line with Rivian’s expectations for the year. He said the losses stemmed from his investment in people, technology and vehicle programs.

Rivian laid off 6% of its workforce in July, citing inflation and rising interest rates.

Rivian produced 4,401 vehicles in the second quarter and delivered 4,467 vehicles, and its production increased by 72% compared to the first quarter of the year, when it produced 2,553 vehicles. This year, the automaker plans to produce 25,000 units. Rivian shares fell 2% after hours.

The automaker still has more than $15 billion in cash to fund its operations, which it says will be enough to fund a new plant in Georgia and a new car platform dubbed R2.

The company also said its delivery vehicles have delivered more than 430,000 packages for Amazon since the start of 2021.

Rivian CFO Claire McDonough said the automaker will introduce lithium iron phosphate batteries in its vehicles. Battery chemistry is becoming more popular with automakers as they face a shortage of battery metals.

Leave a Reply

Your email address will not be published. Required fields are marked *