Fed-up electric car maker Rivian said Thursday that it lost $1.7 billion in the second quarter and estimates it will make just over 26,000 cars this year.
The company said it continues to struggle to get enough components to take production to higher levels.
“The supply chain continues to be a limiting factor in our production,” the company said in a statement. “But through close partnerships with our suppliers, we are making progress.” said it plans to add a second shift of production.
Rivian said it made $364 million in revenue in the three months from April to June, up from $95 million in the first three months of the year. As of the end of June, 98,000 units had been reserved.
Rivian said last month it produced 4,401 vehicles in the second quarter and delivered 4,467 to customers.
Rivian, once considered the “next Tesla” electric car maker, is poised for rapid growth, owning 100-year-old auto industry giants such as Ford Motor, General Motors and Volkswagen. It was upsetting. He planned to make his vehicle an electric pickup and sport utility, a model that would stand apart from the minimalist electric cars Tesla produces.
The company has announced its intention to buy 100,000 electric delivery vans from Rivian, with billions of dollars in backing from investors including Ford and Amazon.
Rivian’s initial public offering is the largest of 2021, and the stock has skyrocketed within days. For a while, the company’s market value was greater than Ford and General Motors combined.
However, difficulties in procuring critical computer chips and manufacturing problems at the factory in Normal, Illinois left production well below the company’s expectations. It has also struggled to build delivery vehicles for Amazon. Rivian stock has plunged, and investors remain concerned about the company’s prospects.
Now, as production increases, we are facing a tougher competitive environment. Ford has begun production of his F-150 Lightning electric pickup and is likely to overtake Rivian sales by the end of the year. Ford, Volkswagen, Hyundai and several others are ramping up sales of electric SUVs, and GM says it will start selling an electric version of his Chevrolet Silverado pickup next year, as well as two of his electric SUVs.
Buyers of some of Rivian’s vehicles are also expected to soon lose access to federal tax credits under the climate change bill, which the House of Representatives is set to approve on Friday. The Senate passed it on Sunday. Under the bill, purchases of vans, SUVs, and pickups priced at $80,000 or more are not tax deductible. Credit is also not available to individuals or couples whose annual income exceeds his $150,000 or $300,000.
Rivian said last month it would lay off about 6% of its 11,500 employees. In a letter to employees, the company’s chief executive officer, RJ Scaringe, said, “To realize our full potential, our strategy is to maintain sustainability as we move forward towards profitability.” It must support possible growth: “In this macro environment, we need to be able to continue growing and expanding without additional funding.”
