Rivian marks over $1.7 billion in losses over Q2 2022
The US electric car start-up Rivian posted a net loss of 1.71 billion US dollars in the second quarter of 2022. However, Rivian was able to significantly increase production – and is also sticking to its annual target of 25,000 vehicles built.
The loss thus almost tripled from $580 million in the same period last year and $120 million in the first quarter of 2022. Rivian’s revenue over April and June was $364 million.
Rivian produced 4,401 vehicles and delivered 4,467 in the second quarter, compared with 2,553 produced and 1,227 delivered in the first quarter. The limiting factor continues to be the supply chain, but progress is being made thanks to close partnerships with suppliers, Rivian said. With $364 million in sales and 4,467 vehicles delivered, each Rivian delivered cost an average of $81,486.
The company is sticking to its goal of reaching a production of 25,000 vehicles in 2022 as a whole. An important factor here is that Rivian plans to introduce a second shift for vehicle assembly towards the end of the third quarter. In the fourth quarter, production will then have to increase significantly in two-shift operation if the 25,000 units are still to be achieved.
In 2023, further scaling will then be needed if Rivian does not want to keep its customers waiting for several years: the number of pre-orders as of 30 June 2022 was about 98,000 vehicles.
However, the company also achieved a milestone in the second quarter: Major customer and shareholder Amazon, which famously ordered 100,000 electric delivery vehicles from Rivian, is now regularly using the first EDVs (Electric Delivery Vehicle). So far, more than 430,000 parcels have already been delivered with the Rivian vehicles, as the company writes in its quarterly report. The larger version is called EDV700, while the smaller version EDV500 has started production validation together with Amazon.
After Rivian had to raise the prices for the R1T and R1S this year, they could soon go down again – but only for new entry-level models with simpler technology. So, according to the quarterly report, an LFP battery is about to be introduced, as well as updated electronics and also a single-motor drive called ‘Enduro’ – until now, Rivian models have only been available with four-wheel drive with two or four motors. The new base offerings are expected to play “an important role in improving affordability” and contribute to “attractive long-term gross margins”, the company wrote.