Rivian is holding on tight to its purpose of delivering 25,000 electrical autos by yr’s finish, however to get there it now anticipates to burn an additional $700 million.
The automaker tucked the revised steering inside its second-quarter earnings report, telling buyers that it expects to lose a whopping $5.45 billion in 2022, up from the $4.75 billion estimate it shared three months earlier. Rivian blamed the hike on a number of elements, together with “provide chain challenges” and “uncooked materials inflation.”
In Q2, Rivian misplaced $1.71 billion and delivered 4,467 autos. These deliveries embrace the automaker’s SUV and truck, in addition to the delivery vans it builds for Amazon. (Altogether, Rivian delivered 5,694 autos through the first half of the yr.)
Nonetheless, Rivian cruised previous analysts’ expectations on income, bringing in $364 million in Q2 (or about $26 million greater than analysts anticipated, per Yahoo Finance). Demand for the EV agency’s SUVs and vans additionally stored climbing; its backlog of preorders hit 98,000 on the finish of June, Rivian advised buyers.
The corporate additionally introduced the addition of former Bosch and Daimler exec Harald Kroeger to its board.
Over the previous few months, Rivian has created some snug distance from its 52-week low of $19.25 per share. That droop got here in Might, when Ford dumped millions of Rivian shares. Right now, the young-ish EV maker ended common buying and selling at $38.95 per share, or up 4%.
Final month, Rivian began shedding about 6% of its workforce as a part of a restructuring plan prompted by a altering and difficult financial surroundings, the place inflation reached document highs, rates of interest rose and commodity costs continued its upward climb.
The manufacturing operations staff working at its Regular, Illinois, plant weren’t be impacted by layoffs.
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