√Rivian loses $US1.7 billion in three months
Despite ramping up production in 2022, US electric-car start-up Rivian remains under financial stress.
US electric vehicle specialist Rivian has posted a $US1.7 billion ($AU2.64 billion) loss for the third quarter of 2022 (July to September inclusive), despite reporting a near 50 per cent increase in revenue over the same period.
Rivian used some of its cash reserves to offset the loss, drawing down from $US14.9 billion ($AU23.2 billion) at the end of the second quarter (April to June) and now reports $US13.8 billion ($AU21.5 billion) in cash – enough to see operations at the startup continue to 2026.
Despite an increase of $US500 million ($AU780 million) on top of losses sustained over the same period in 2021, the company blamed the most recent financial hit on increased production costs and stock compensation (shares in Rivian provided as part of an employee remuneration package).
Rivian faced widespread backlash in March 2022 after it announced it was increasing prices of its R1T electric pick-up and R1S electric SUV by as much as 20 per cent due to “inflationary pressures, component costs, and unprecedented supply-chain shortages” – a decision it quickly reversed.
The company delivered more than 6500 vehicles between July and September 2022, and now claims it has 114,000 pre-orders on its books from customers in North America – in addition to the initial order of 100,000 electric vans for retail giant Amazon.
In September 2022, Rivian and Mercedes-Benz announced a new shared production facility in Europe, with the joint venture set to produce two new large electric vans for the two companies.
The post Rivian loses $US1.7 billion in three months appeared first on Drive.
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