Electric Truck Startup Rivian Loses Over $1 Billion in First Quarter

America Based, Rivian, a leading electric vehicle company supported by Ford and Amazon, reported a $1.59 billion net loss in 2021 first quarter based on revenue of $ 95 million. According to the company, 1,227 vehicles have been delivered to customers in the last three months, bringing the total number 2,148.

The company said reservations for R1T and R1S electric vehicles exceeded 90,000, up from 83,000, which were last renewed in March. Till May 9, according to the company,  they had manufactured about 5,000 vehicles, including SUVs, electric trucks and vans, for Amazon.

Announced. The company reported its first-quarter results after a particularly poor week when stocks fell to record lows following news that major investors, Ford, sold about 8% of Rivian’s stock. The company’s stock price has fallen by more than 78% since this year.

Rivian struggles to maintain the materials needed to make lithium-ion batteries for vehicles and the semiconductor chips needed for many of its high-tech features like other automaker companies. Rivian’s share price had been down since last year’s historic opening  IPO when the company entered the open market with a total valuation of over $ 80 billion. Since then, constraints, production and supply chain issues have slowed progress.

In talk with investors, RJ Scaringe, Rivian CEO told us the end of the supply chain problem is approaching. “I think we’ve really experienced the worst; if so, it’s a valley of supply shortages,” scaring said. “And the suppliers are half-open.”

Morgan Stanley analyst Adam Jonas said that Rivian’s corporate value is essentially market capitalization minus net cash, “currently just over $ zero.” This sends a message to investors that if company was unable to control the supply chain, a company may need to dissolve its shareholders.

In reply, Claire McDonough, Rivian CFO said company cash was $ 17 billion, which could boost production at regular Illinois-based plant in profitability.

According to one previous result, Rivian has diminished ambitions, maintained a more conservative schedule for the rest of the year, and produced only 25,000 vehicles during 2022. Report. Rivian said in the first-quarter results that it plans to produce that number of vehicles this year.

RJ Scaringe, CEO of Rivian, said the company’s $ 17 billion Rivian would be cheaper than the first two vehicles with retail prices above $ 70,000. The company’s R1 platform is a dual-engine architecture that underpins R1T trucks and R1S SUVs.

In the first quarter, Rivian produced 2,553 vehicles, of which only 1,227 were delivered to customers. When questioned about this gap, McDonough told being a direct consumer company without a traditional dealer network that functions as a distribution center.

Revenue comes as Ford begins shipping its first batch of F150 Lightning electric pickups to its customers. Although Rivian has a reputation for being the first to launch the R1T electric truck, Ford’s electric F-series was expected to encourage more customers to switch to electric vehicles.