Rivian Lost $6.8 Billion Last Year as Production Fell Short
According to the maker of electric trucks, it expects to double its production by 2023. According to the company, parts supply became more reliable.
Rivian, the maker of electric trucks, stated Tuesday that it had lost $1.7 billion over the last three months of 2013 due to production problems.
This loss brings the company’s total losses to $6.8billion for 2022. It also highlights the difficulties that once promising start-ups face in gaining market share from Tesla, the dominant electric vehicle manufacturer. Lucid Motors, a young automaker, reported last week that it had lost $2.6 billion in 2022.
Rivian stated that the supply chain issues that plagued it last year will continue this year, but they will be easier to anticipate. According to the company, it expects to produce approximately 50,000 vehicles this fiscal year, which is roughly double what it produced in 2022.
Rivian's chief Executive, R.J. Scaringe said that the company was trying to cut costs, particularly now that Tesla has reduced the price of its cars as much as 20%. According to Mr. Scaringe, lowering costs is "our core challenge today."
He stated that demand was still strong and that the company had an order backlog that would last until 2024.
Rivian generated $663 million in revenue and shipped 8,054 vehicles in the fourth quarter 2022. It had a total revenue of $1.7billion and produced 20,332 vehicles in 2022. It produced 24,337 vehicles last fiscal year, which was just short of the 25,000 it had hoped for.
According to the company, it had $11.6billion in cash and cash equivalents as of December 31, compared with $18.1billion a year ago.
Rivian is an electric pickup truck manufacturer based in Irvine, Calif. It also makes a sport utility vehicle, a van and a van for delivery. Rivian has attracted many wealthy investors including Amazon who placed large orders for its vans. Ford Motor invested in the company, but it ultimately chose not to work with Rivian. The majority of its stock was sold.
Inability to increase production at Normal, Ill.'s plant quickly has resulted in a decline in sales and a plunge in stock prices. It traded at $19 on Tuesday, down from $47 last year. After the earnings report was released, the company's share price fell by 8 percent in extended trading.
Rivian stated that it expects to report a loss in 2023 of $4.3 billion, before considering interest, tax, and other expenses.