Rivian continues to see red in the second quarter of 2022
NORMAL (25 News Now) - After seeing a loss of $1.59 billion in the first quarter of 2022, Rivian saw more red in the second quarter, announcing Thursday a net loss of $1.7 billion.
This comes as the company says it remains focused on fully ramping its 150,000 installed annual units of capacity in its Normal, Illinois facility to meet the strong demand for their product.
“As we produce vehicles at low volumes on production lines designed for higher volumes, we have and will continue to experience negative gross profit related to labor and overhead costs. This dynamic will continue in the near term, but as we have already started to experience, we expect it will improve on a per vehicle basis as production volumes ramp up faster than future labor and overhead cost increases,” Rivian said in its second quarter letter to shareholders.
“We continue to invest in key technologies and capabilities that we believe position Rivian to maintain strong demand and attractive long-term growth, while also delivering structural cost advantages,” Rivian added in it’s letter.
Rivian says it produced 4,401 total vehicles in the second quarter. That is compared to 2,553 in the first quarter of 2022. As of June 30th, Rivian says their net consumer preorder backlog was approximately 98,000.
It also generated $364 million of revenue, which Rivian says was primarily driven by delivered vehicles in the second quarter.
“Supply chain continues to be the limiting factor of our production; however, through close partnership with our suppliers we are making progress. We expect to be able to add a second shift for vehicle assembly towards the end of the third quarter,” said Rivian in its letter.
Total operating expenses in the second quarter grew to $1 billion. That is compared to $580 million in the same period last year. Research and development expense in the second quarter was $543 million, compared to $394 million last year. Rivian says that included
Rivian also praised Amazon’s rollout of its custom EDV’s to locations across the country in Chicago and St. Louis.
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