BURNING CASH: EV Maker Rivian Posts $1.7 Billion Loss
Posted on 08/12/2022
Electric-vehicle manufacturer Rivian Automotive, Inc. said net losses had almost tripled to US$ 1.7 billion in its second quarter of 2022 (net loss of US$ 3.306 billion for the first half of 2022). Rivian earlier blamed profitability issues with supply chain issues. Rivian’s losses more than doubled from the same period last year, when it lost US$ 580 million. Rivian first started to produce vehicles at the end of 2021. Amazon.com, Inc. is a major investor in Rivian. Amazon has around 16.4% ownership (voting power) in Rivian and the online shopping giant committed to purchase 98,000 electric vehicles from Rivian. Rivian produced 4,401 vehicles in the second quarter of 2022 and delivered 4,467 vehicles.
In the last quarter, Rivian generated less than US$ 400 million in sales, but luckily the company has US$ 14.923 billion of cash on hand. Rivian had laid off 6% of its workforce in July 2022.
The base cost of a Rivian R1T electric pickup truck is US$ 67,500. According to Rivian’s online payment calculator, the R1T electric pickup truck is listed at 4.45% APR for 72 months.