The US manufacturer of electric cars, Rivian, has had to end the second quarter of 2022 with bitter losses. Within just one year, losses have almost tripled to 1.7 billion US dollars. Revenues, on the other hand, were only $364 million for the manufacturer.
US automaker with billion-dollar loss
The second quarter of 2022 was anything but a success for US automaker Rivian. The Plymouth-based electric pickup truck maker generated a full $1.7 billion loss. Yet the stock had gotten off to an extremely successful start last November. That compares with sales of just $364 million, according to the letter to shareholders.
4,401 vehicles were produced in the second quarter of 2022, while the manufacturer said it had about 98,000 reservations for its vehicle models as of June 30. The limiting factor in production is the company’s own factories, but it is “making progress in collaboration with our suppliers”, it added.
Above all, these problems in the supply chain are responsible for the high loss. Accordingly, Rivian is adjusting its targets, but wants to maintain the targeted production goal.
Even partner Amazon can’t help
Rivian’s stock has crashed by about 64 percent since the beginning of the year. Most recently, numerous employees have already had to be laid off. So things aren’t necessarily going well for the automaker, whose R1T model aims to compete with Tesla’s Cybertruck.
The start-up is receiving support from a strong partner in the form of shipping giant Amazon. The tech giant holds about 18 percent of Rivian’s shares and as recently as July 2022 announced delivery vehicles in the U.S. that will be used in Baltimore, Chicago, Dallas, Kansas City, Nashville and other major U.S. cities.
Even the recent climate change package passed in the U.S., which was supposed to provide a boost in electric car sales, hasn’t yielded any benefits so far. The air is getting thinner for Rivian CEO Robert Scaringe. The package passed by U.S. President Joe Biden provides a $7,500 tax credit for e-car buyers if they earn less than $150,000.
Redburn analyst Charles Coldicott, speaking to Bloomberg: “The market is clearly much less forgiving of issues that affect when a company can finance itself.”
In Venice, Los Angeles, Rivian just this day launched its first hub, where it is showing off its nearly identical first models, the R1T and R1S. Both electric pick-ups build on the same basis and hit with at least 67,500 US dollars (about 65,900 euros) in the case of the R1T or 72,500 US dollars (70,750 euros) for the E-SUV Rivian R1S.
E-car maker Lucid Motors was also in the red in the second quarter of 2022 and had to significantly lower its production targets for 2022. And this is already the second time.