Car rates

Rivian losses climb to $1.7 billion as production increases

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

“We weren’t even able to perform a single full shift because of component supply,” Scaringe said.

Rivian expects supply chain shortages to continue to limit its growth, but is confident enough in the improving outlook that it said it plans to add a second shift in its Normal, Illinois manufacturing facility later this year. Scaringe said he is confident the rate of production will continue to grow as more vehicles rolling out of the factory gates is key to achieving profitability.
Rivian, which enjoys the massive support of Amazon (AMZN), had 98,000 pre-orders in the United States and Canada at the end of June, and it said its pre-order rate has increased this year. The majority of new buyers of its pickup truck, the R1T, have never owned a pickup truck before, the automaker said.

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

Rivian had 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. 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 manufacturing plant in Georgia and a new vehicle platform, dubbed R2.

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

Rivian’s chief financial officer, Claire McDonough, said the automaker would introduce a lithium iron phosphate battery in its delivery vehicles. Battery chemistry has become increasingly popular with car manufacturers as they face shortages of battery metals.