Plug-in hybrid automaker Rivian has been one of the most prolific electric vehicle startups in recent memory, and now it’s looking to continue its growth by cutting costs and boosting production to meet targets laid out in 2022. Founded in 2009, Rivian made headlines last year when it secured $700 million in funding, including $500 million from Amazon founder Jeff Bezos’ Bezos Expeditions investment company. The company is valued at $3 billion and boasts an impressive 400 employees with plans to grow even further in the future, despite not yet having released its first production model.
Rivian Automotive, a manufacturer of electric vehicles, reiterated its 25,000 car production goal for 2022 on Wednesday, but added that it will spend less to achieve it as it announced third-quarter sales that fell short of Wall Street projections.
Rivian lowered their forecast for capital investments in 2022: As a result of shifting some planned investment to next year, it now anticipates its full-year capital expenditures to reach roughly $1.75 billion, down from the $2 billion it had previously guided to following the second quarter.
According to the guidance it provided in August, the business continues to anticipate that its adjusted loss before income, taxes, depreciation, and amortisation for the whole year would total $5.4 billion.
In after-hours trading, the company’s shares increased by 7%.
Using data compiled by Refinitiv, the following significant figures from Rivian’s third-quarter earnings report are contrasted with typical Wall Street analyst predictions:
$536 million in revenue was received vs $551.6 million anticipated.
Compared to the predicted loss of $1.82 per share, the adjusted loss per share was $1.57.
Rivian reported a net loss of nearly $1.72 billion for the third quarter, a larger loss than the $1.23 billion it posted in the same period last year.
The corporation has around $13.8 billion in cash on hand as of September 30; this is a decrease from $15.5 billion as of June 30. Inflation, according to Rivian, has affected its supply chain, but the company is taking efforts to cut costs and delay expenditure on new products. It stated again that it is “confident” that its cash supply will endure until 2025.
The business now anticipates launching its forthcoming smaller product platform, known as R2, in 2026 as opposed to 2025 as it had previously stated as part of its efforts to limit expenditure. The R2 will be produced at a brand-new Georgian plant.
Preorders for Rivian’s R1-series trucks and SUVs have increased from about 98,000 as of August 11 to “over 114,000,” according to the company. These sums do not account for the 100,000 electric delivery vehicles that Amazon has requested for 2020.
A crucial step toward increasing production quantities, according to Rivian, was the addition of a second shift of workers at its Illinois facility. Although the second shift is currently manufacturing automobiles, it was observed that the new hires are still coming online.
On October 3, Rivian said that it built 7,363 automobiles in the third quarter and gave 6,584 of them to clients. Through the third quarter of the year, Rivian manufactured 14,317 automobiles..
The company also said on Wednesday that it has switched from moving cars by road to rail as manufacturing quantities have increased. Although the shift has decreased prices, it may also lengthen the time it takes for new vehicles to reach customers once they are created. The difference between its quarterly production and delivery totals may widen as a result of that lag, according to Rivian.