Rivian Still Has Strong Demand, But Showed Net Loss of $1.7 Billion For Q3
Big losses hit Rivian, but the brand is still on target to hit its production goals.
Rivian’s Q3 financial performance results have been released, and Rivian’s still operating at a loss. Despite delivering 7,363 vehicles, and generating $532 million in revenue, the brand is still operating at a net loss of $1.7 billion.
The brand is still on track to meet its 25,000 deliveries in 2022 goal. It also says that demand for the trucks is still very much overwhelming, with 114,000 preorders for the R1S and R1T. This is up from 98,000 from last quarter and doesn’t include demand for its EV delivery vans. Rivian even added a second shift to its Normal, IL assembly plant.
Still, these losses are affecting the brand somewhat. CEO RJ Scaringe has officially pushed back the development and debut of its planned R2 platform. The R2 platform would be a cheaper, smaller, volume-oriented vehicle base, originally planned to go on roads in 2025. Now, the brand says it won’t be here until 2026 at the earliest. The R2 is supposed to be made at a forthcoming Georgia plant, one that has a whopping $1.5 billion of incentives thrown at it to make it happen.
Despite the big losses, Rivian claims to have $14 billion in cash – enough to carry the brand through 2025, it claims. Hopefully, the brand can figure out how to get losses down, and profit up, and then Rivian will eventually become profitable.
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Kevin has been obsessed with cars ever since he could talk. He even learned to read partially by learning and reading the makes and models on the back of cars, only fueling his obsession. Today, he is an automotive journalist and member of the Automotive Press Association. He is well-versed in electrification, hybrid cars, and vehicle maintenance.
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