Home Rivian Rivian demand remains strong, CEO says after $1.7B Q3 net loss

Rivian demand remains strong, CEO says after $1.7B Q3 net loss

Rivian demand remains strong, CEO says after $1.7B Q3 net loss

Demand remains strong for Rivian Automotive Inc.‘s R1T pickup and R1S SUV, CEO RJ Scaringe said after the automaker posted a $1.7  billion third-quarter net loss and pushed back the launch of a smaller R2 platform to 2026.

“We continue to see strong demand for our product,” Scaringe said on the company’s earnings call Wednesday.

Rivian said it had preorders for 114,000 vehicles on its current R1 platform, up from 98,000 that it reported at the end of the second quarter. Those preorders are separate from an Amazon order for delivery vans.

The electric vehicle startup has started a second shift at its Normal, Ill., factory to meet demand for its vehicles but continues to struggle with supply-chain issues, executives said.

“The second shift is now up and running,” Scaringe said. “We’re going through the ramp now and it’s going well.”

The expansion of production comes just over a year after Rivian launched the R1T into the market.

Rivian CFO Claire McDonough said the lack of a key vehicle component caused five days of production line downtime in October and November combined. She did not identify the component.

Scaringe said that Rivian has worked with the supplier of the component, which he also did not identify, to avoid further shortages.

The automaker reiterated its 2022 production target of 25,000 units for its three vehicles — the R1T, R1S and EDV delivery vans. Amazon has ordered 100,000 of the electric vans.

Last year, Rivian had forecast 50,000 deliveries for this year before cutting that in half in March as a lack of parts slowed production in Normal, which has an official capacity of 150,000 units per year.

McDonough said the company had about $14 billion in cash, which was sufficient to fund its expansion operations through 2025. She also said Rivian was pushing back the introduction of its R2 platform to 2026 from 2025 previously.

The R2 platform is designed for smaller, more inexpensive vehicles that likely would include both a pickup and one or more SUV-style vehicles, automotive forecasters have said. The R2 vehicles will be built at a future $5 billion factory in Georgia.

As part of its third-quarter financial results, Rivian reported a net loss of $1.72 billion, compared with $1.23 billion a year earlier. It delivered 7,363 vehicles, up from 4,467 units in the prior quarter.

Revenue was $536 million in the quarter ended Sept. 30, compared with analysts’ expectations of $551.6 million, according to Refinitiv data quoted by Reuters.

Shares were volatile in after-market trading, rising as much as 7 percent after falling nearly 12 percent in the regular session, Reuters reported.

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