Rivian lost $1.7 billion in the second quarter of 2022, as it works to ramp up its vehicle production as a result of the on-going supply chain crunch. The automaker lost $580 million last year, which is more than doubled its losses from the same period last year.
Rivian CEO RJ Scaringe said on a call with investors that they were not able to fully utilize their production line during the second quarter.
Scaringe said we weren't able to run a full shift because of component supply.
Rivian expects to add a second shift at its Normal, Illinois, manufacturing plant later this year, as it believes supply chain shortages will continue to limit its growth. Scaringe said that the production rate will continue to grow, as increasing the number of vehicles making it out of factory doors is critical to achieving profitability.
The US and Rivian, which has strong backing from, had 98,000 preorders in the US and Canada at the end of June, and it said its rate of preorders has increased this year. The automaker said that the majority of buyers for its pick-up truck, the R 1 T, had never owned a pick-up truck before.
The hefty losses are in line with Rivian's expectations for the year. It said the losses stemmed from its investments in people, technology and vehicle programs. Injuries and increased interest rates were the main reasons behind the reduction of the workforce in July. The workforce cited inflation and increased interest rates as a result of the increased interest rates in July. Injuries and increased interest rates caused Rivian to lay off 6% of its workforce in July. In the second quarter, Rivian produced 4,401 vehicles and delivered 4,467 vehicles, and its production increased 72% from the first quarter of the year, when it produced 2,553 vehicles. The automaker plans to produce 25,000 units this year. Rivian's stock fell 2% in the after-hours trading. The automaker still has more than $15 billion in cash in cash to finance its operations, which it says will be enough to finance its upcoming Georgia manufacturing plant and a new vehicle platform called R 2. Since early 2021, the company said that it has carried more than 430,000 packages for Amazon. Rivian's chief financial officer, Claire McDonough, said the automaker will introduce a lithium iron phosphate battery pack in its delivery vehicles. The battery chemistry has become more popular with automakers as they face shortages of battery metals.