July 15, 2024
Rivian Q1 earnings to reflect factory downtime

While Rivian is running behind the pace it needs to meet its 2023 production estimate, the company says it’s laying the groundwork for better numbers for the rest of the year.

In a May 1 shareholder letter, CEO RJ Scaringe said the EV maker has produced about 35,000 vehicles since the start of production, including the R1T, R1S and two sizes of vans for Amazon, the EDV500 and EDV700.

“Our 2023 production guidance of 50,000 vehicles remains on track, representing a 100 percent increase from 2022,” Scaringe said in the letter. “We have deepened and extended our relationships with key suppliers to support our ramp.”

The automaker is also working on its next vehicle platform, called R2, which is being designed for more inexpensive models. Rivian is building a plant in Georgia to make R2 vehicles starting in 2026. The company’s most inexpensive vehicle currently is the base R1T at $74,800 with shipping.

“Built from the ground up, our Georgia plant will leverage all the learnings from our Normal, Illinois, campus and is expected to have 400,000 units of annual production once it’s operating at full capacity,” Scaringe said in the shareholder letter.

Some financial analysts have questioned whether Rivian will have enough cash to fund the new plant and its production ramp-up, unless it sharply brings down costs. The company reported a net loss of $6.75 billion for full-year 2022.

Rivian announced job cuts in February totaling 6 percent of its work force, or about 840 people. It also cut jobs in July 2022.

Rivian shares rose 3.6 percent on Friday, May 5, to close at $13.41. That’s down almost 90 percent from its first day of trading in late 2021.

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