Rivian stumbles in profit debut with failure on EV exit target
(Bloomberg) – Rivian Automotive Inc. has said it expects to fall short of its annual production target as the electric pickup truck maker has given investors a first glimpse of its operations as a state-owned company.
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The EV startup will be “a few hundred vehicles short” of its goal of producing 1,200 units by the end of the year, according to a statement released Thursday. Rivian said he suffered a net loss of $ 1.23 billion in the third quarter, an adjusted net loss of $ 776 million.
Raising the production of the branded pickup has been “more difficult than expected,” chief executive RJ Scaringe said on a conference call with analysts. There are no long-term systemic issues in its supply chain, he added.
The report highlights the challenges of ramping up production after potential rival Tesla Inc. raised $ 12 billion in an initial public offering last month, the company’s biggest listing. year. The Irvine, Calif.-Based company, which has also announced plans to open a new plant in Georgia, is backed by a stellar list of strategic and institutional investors, including Amazon.com Inc, the EV pickup rival. Ford Motor Co. and Wall Street stalwarts like T. Rowe Price and BlackRock.
Rivian shares fell 2.5% at 4:59 p.m. late Thursday in New York. At close, the stock was up 40% from its IPO, giving it a market value of nearly $ 100 billion, higher than that of General Motors Co. and Ford.
The startup launched its first model in September, the R1T plug-in pickup, which is being built at a factory in Normal, Ill.. Rivian began deliveries of its R1S SUV this month. He also has an order to produce 100,000 battery-powered delivery vans for Amazon.
Rivian prioritized the Amazon Van Project’s resources and workforce over its own consumption models, Bloomberg reported in October. Rivian said on Thursday that he would begin deliveries of the first Prime Rivian salable vans to Amazon this month.
Net pre-orders for the two R1 models reached a total of 71,000 as of Dec.15, Rivian said, up from 55,400 at the end of October. The company also has more than 10,000 employees.
To support its growth, Rivian said he would start building the electric vehicle and battery plant in Georgia next summer, confirming reports from Bloomberg News and other media in recent days. The $ 5 billion site is expected to employ more than 7,500 people and have a manufacturing capacity of 400,000 vehicles per year, with production starting in 2024.
Rivian ended the quarter with cash and cash equivalents of $ 5.2 billion. Factoring in the proceeds of the company’s IPO and the value of its senior secured notes, the company would have $ 19.9 billion in available cash.
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