Rivian expects 'continued losses' for the foreseeable future as it ramps up production

Rivian Automotive said in a 10-K filing with the SEC earlier today that it expects to “incur significant future expenses and sustained losses” as it is a “growth phase” company.

“We have had a net loss since our inception, which includes net losses of $0.4 billion, $1.0 billion and $4.7 billion for the years ended December 31, 2019, 2020 and 2021, respectively,” Rivian said in the filing. ” “We believe that we will continue to generate operating and net losses in the future as we grow, including following our initial generation of revenue from the sale of our vehicles, which will be R1T in September 2021 and R1S and EDV in December 2021. We don’t expect to be profitable for the foreseeable future as we invest in our business, build capacity, and accelerate operations, and we can’t assure you that we Will achieve or be able to maintain profitability at some point in the future.”

In February, Rivian raised any non-final order prices for its vehicles by at least 17 percent. This prompted Tesla CEO Elon Musk to indicate that the Rivian’s negative gross margin would be “shocking” as it launched new dual-motor configurations and increased prices for the R1T and R1S. The company backtracked on the move just days later, saying the original prices would be respected and canceled orders would be reinstated.

Like many automotive startups, Rivian will struggle financially for years to come. In its early days, Tesla almost drowned due to lack of funds. CEO Elon Musk often refers to this time as one of the darkest in the company’s history. Tesla received funding just days before its doors were expected to close, as investors poured more money into the company, eventually leading to the development of the Model S.

Rivian will be no different. However, Rivian has considerable financial backing from some of the biggest companies in the world, such as Amazon, which ordered 100,000 EDVs from the automaker in 2019. 2021.

“If we are to ever achieve profitability, it will depend on the successful development and commercial introduction and acceptance of our consumer vehicles, such as the R1T and R1S, our commercial fleet vehicles, such as the EDV, and our services. , which may not have happened,” Rivian said in the filing.

Rivian reported its earnings for Q4 2021 on March 10, saying it cut its production target for the year from 40,000 to 25,000 units. Additionally, the company missed Wall Street’s estimates by reporting a loss per share of $2.43 and a revenue loss of $54 million.

“Our path to EV leadership will not be easy,” Rivian said in its shareholder deck for the quarter. “In the immediate term, we are not untouched by supply chain issues that have challenged the entire industry. Those issues, which we believe will continue through at least 2022, have added a layer of complexity to our production ramp-up. ,

Rivian also stated that it “does not expect to reach the vehicle production rate which, when annualized, [that] The result will be that we will use 100% of the facility’s current installed capacity of up to 150,000 vehicles by the end of 2023.”

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Rivian expects ‘continued losses’ for the foreseeable future as it ramps up production






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