Rivian has released its second earnings report since going public, revealing a loss of $4.5 billion for the year, among other financial details.
After having a significant year in its history last year, Rivian, the EV startup, has fulfilled its obligation to its shareholders by releasing the financial report for the last quarter of the year and the whole fiscal year.
The company lost $2.5 billion in the quarter under review, which brought the total loss for the year to $4.5 billion. Rivian said it earned a revenue of $55 million for the year.
Forecasting for 2022, Rivian is keeping a modest outlook. This is in the face of supply chain constraints and the global chip shortage affecting all sectors. For this reason, Rivian expects to produce only 25,000, including its pickup truck and electric delivery van for Amazon. Barring the constraints, Rivian said it would have had double the output for the year.
In its earnings report, Rivian said, “Over the course of fiscal year 2022, we plan to remain focused on ramping up production of both the R1 and RCV lines in Normal, as well as investing in our technology and product portfolio for future growth. We believe that throughout 2022, the supply chain will be a fundamental limiting factor in our total output for the Normal Factory and that our manufacturing equipment and processes would have the ability to produce enough vehicles to deliver over 50,000 vehicles across our R1 and RCV platforms in 2022 if we were not constrained by our supply chain. Our confidence comes from the demonstrated performance of our processes and equipment which is in line with our expectations. Despite this, due to the supply chain constraints currently visible to us, we believe we will have sufficient parts and materials to produce 25,000 vehicles across our R1 and RCV platforms in 2022. We continue to work with suppliers and look for engineered solutions to help us combat any anticipated supply chain issues.”
CEO RJ Scaringe touched on the supply chain problem during an earnings call. “We are no doubt experiencing one of the most challenging supply chain environments the automotive industry has ever seen.”
Rivian had been in the news recently for hiking costs for people who already had preorders. This led to a backslash, as some preorder holders realized they would have to pay up to $20,000 more. The company had to walk back the statement and issue an apology through Scaringe. However, the damage was done already as the company’s stock price plunged by 25 percent.
The price increase also led to an increase in the cancellation rate, as admitted by the company. However, it claimed more than half returned after Rivian canceled the price adjustment. “This wasn’t driven by some mass cancellations, but rather the recognition that the brand we’re building is the foundation of a platform upon which ultimately we’re going to be selling millions of different vehicles per year,” Scaringe said. “And these early customers are such a critical part of what we’re building as an organization.”
2021 was momentous for Rivian. It went public in a historic IPO, ending up with a market valuation nearly double that of Ford, one of the oldest automobile companies around. Rivian netted $14 billion from the IPO.
Rivian also delivered its R1T pickup truck for the first time after multiple delays. It became the first company to ship a battery-powered truck and went on to deliver 920 units, although the majority of it went to employees.