Rivian sees profitability in 2024 despite losses in the billions

Rivian in Normal
Rivian in Normal(25 News/Heart of Illinois ABC)
Published: Mar. 1, 2023 at 1:54 AM CST
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NORMAL (25 News Now) - Electric vehicle-maker Rivian Automotive expects it won’t be losing billions of dollars much longer.

Company executives released fourth quarter and full-year results on Tuesday, also predicting Rivian will become profitable in 2024 while ramping up production at its plant in Normal.

Rivian said it lost almost $6.8 billion in 2022, compared to almost $4.7 billion the previous year. On a quarterly basis, Rivian said it was able to trim its losses to about $1.7 billion during the final three months of the year, down from about $2.5 billion in the third quarter.

Rivian came close to reaching its goal of producing 25,000 electric vehicles in 2022, and this year, its goal is to make 50,000 vehicles.

In the fourth quarter, Rivian said it made 10,020 vehicles and delivered 8,054. For the year, the company said it delivered 24,337 vehicles.

Cost-cutting is one of this year’s major objectives, in addition to speeding up production of Rivian’s first four vehicles. Last summer, Rivian confirmed that it was reducing its workforce by nearly 6%, but during the year, Rivian also added a second assembly line shift.

“It’s the combination of increased volumes that are driving significant cost leverage within the business as we’re continuing to ramp up production levels in the plant in Normal,” said Claire McDonough, Rivian’s chief financial officer.

Supply chain shortages continue to be “the main limiting factor of our Normal facility output,” the company said in its quarterly letter to shareholders.

“Our team continues to work on the introduction of new engineering design changes and key technologies which will take effect during the second half of 2023 to help mitigate anticipated supply chain constraints,” the company said.