Rivian records billions in losses in 2023

The American EV start-up Rivian has presented its business figures for the fourth quarter and full year 2023 - with a deep red balance sheet. Although the company was able to increase production and sales, the bottom line is a net loss of 5.4 billion US dollars - and Rivian does not expect production to increase in 2024.

Image: Rivian

In terms of turnover, the balance sheet for 2023 still looks quite positive: Rivian recorded 4.4 billion dollars, the equivalent of around four billion euros. The 2022 balance sheet still showed a figure of 1.66 billion dollars, meaning Rivian was able to increase its turnover by 167 per cent. However, such a sales development was to be expected, as deliveries have also increased to a similar extent: it has been known since January that Rivian delivered 50,122 vehicles in 2023, compared to 20,322 Rivians in 2022.

However, the net loss for the year as a whole totalled 5.4 billion dollars (4.98 billion euros). Rivian is therefore still losing a lot of money despite growing sales. If you want to look at it positively: In 2022 as a whole, Rivian posted a net loss of 6.75 billion dollars, so losses have decreased. And in 2022, losses still exceeded turnover by a factor of four; in 2023, it is “only” a factor of 1.2. Rivian is therefore on the road to recovery, but it is still losing billions. With the 4.69 billion dollar net loss from 2021, Rivian has lost 16.8 billion dollars within three years.

It is unclear how the trend will continue in 2024. This is because the company’s balance sheet states a production forecast of 57,000 vehicles – exactly the same level as in 2023 (57,232 vehicles). As Rivian has extended its drive options for the two R1 models downwards over time and the smaller R2 is due to be presented on 7 March, it is likely that increasingly cheaper Rivian vehicles will be sold. If production remains constant, sales could even fall slightly.

Rivian also mentions some positive developments in the annual report. For example, the R1 models are the “top selling electric vehicles” in the United States in the over 70,000 dollar class. And compared to Q4 2022, gross profit per vehicle had increased by 81,000 dollars by the end of 2023. However, if the net loss is taken as a basis, Rivian still lost 107,000 dollars on every vehicle delivered in 2023. The R2 is expected to offer significant improvements in cost efficiency.

“We made great progress in 2023 despite economic headwinds, and we’re excited about the year ahead. We firmly believe in the full electrification of the automotive industry, but recognize in the short-term, the challenging macro-economic conditions,” says Rivian CEO RJ Scaringe. “We are aggressively focused on driving cost efficiency throughout the business, achieving positive margins and building our go-to-market function to support our long-term growth. We are excited about the reveal of our next generation vehicle, R2, on March 7.”

rivian.comrivian.com (letter to investors, PDF)


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