Rivian losses rise to $1.7 billion as production ramps up

Rivian CEO RJ Scaringe said during a conversation with investors that they were unable to fully utilize their production line for “much” of the second quarter.

“We weren’t even able to run a full single shift due to component delivery,” Scaringe said.

Rivian expects supply chain shortages to continue to limit its growth, but it is confident enough in the improved outlook that it expects to add a second shift later this year at its Normal, Illinois plant. Scaringe expressed confidence that the pace of production will continue to grow as increasing the number of vehicles exiting factory doors is critical to achieving profitability.
Rivian, who has heavy support from Amazon (AMZN), had 98,000 preorders in the US and Canada at the end of June, and it said preorders have increased this year. The majority of new buyers of its pickup truck, the R1T, have never owned a pickup truck, the automaker said.

The significant losses are in line with Rivian’s expectations for the year. It said the losses were the result of its investments in people, technology and vehicle programs.

Rivian had laid off 6% of his staff in July due to inflation and increased interest rates.

Rivian produced 4,401 vehicles in the second quarter and delivered 4,467 vehicles, and production increased 72% from the first quarter of the year when it produced 2,553 vehicles. The automaker plans to produce 25,000 units this year. Rivian’s stock fell 2% in after-hours trading.

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

The company also said its delivery vehicles have transported more than 430,000 packages for Amazon since early 2021.

Rivian’s chief financial officer Claire McDonough said the automaker will introduce a lithium iron phosphate battery pack in its vans. Battery chemistry has become increasingly popular with automakers as they face a shortage of battery metals.

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