Rivian, a maker of electrical vans, stated on Tuesday that it misplaced $1.7 billion within the remaining three months of final 12 months because it struggled with manufacturing difficulties.
The loss brings the corporate’s complete losses for 2022 to $6.8 billion and highlights the troubles that once-promising start-ups are having gaining floor on Tesla, which dominates the electrical automobile enterprise. Final week, one other younger automaker, Lucid Motors, stated that it misplaced $2.6 billion in 2022.
Rivian stated the availability chain issues that dogged it final 12 months would proceed this 12 months however turn out to be simpler to anticipate. The corporate stated it anticipated to provide 50,000 autos this 12 months, roughly twice as many because it did in 2022.
In a convention name, Rivian’s chief govt, R.J. Scaringe, stated the corporate was working to cut back prices, particularly now that Tesla had minimize the costs of its automobiles by as a lot as 20 %. Driving prices down “is our core problem at this time,” Mr. Scaringe stated.
He added that demand remained “strong,” noting that the corporate had a backlog of orders that it anticipated to final into 2024.
Rivian introduced in $663 million in income, and delivered 8,054 autos, within the fourth quarter of 2022. On a full-year foundation, it had income of $1.7 billion, and delivered 20,332 autos, in 2022. It produced 24,337 autos final 12 months, simply in need of its decreased aim of 25,000.
The corporate stated it had $11.6 billion in money and money equivalents on the finish of December, down from $18.1 billion a 12 months earlier.
Rivian, which relies in Irvine, Calif., makes an electrical pickup truck, a sport utility automobile and a supply van. The corporate has attracted a number of deep-pocketed traders, together with Amazon, which has positioned a big order for the producer’s vans. Ford Motor additionally invested within the firm however finally determined to not collaborate with Rivian and bought most of its inventory.
The corporate’s incapacity to rapidly enhance manufacturing at its plant in Regular, Unwell., has restricted gross sales, and its inventory value has plunged. On Tuesday, it was buying and selling round $19, down from round $47 a 12 months earlier. The corporate’s share value was about 8 % decrease in prolonged buying and selling after the discharge of its earnings report.
Rivian stated it anticipated to report a lack of $4.3 billion in 2023 earlier than making an allowance for curiosity, tax and different bills.
