Rivian, the bustling electric vehicle company backed by Ford and Amazon, reported a net loss of $1.59 billion in the first quarter of 2021 based on $95 million in revenue. The company said it has delivered 1,227 vehicles to customers over the past three months, bringing its total number of deliveries to 2,148.
Rivian said it now has more than 90,000 reservations for its R1T and R1S electric vehicles, up from 83,000 in its last update in March. The company says that as of May 9, it has produced roughly 5,000 vehicles, including its electric truck, SUV and delivery van for Amazon.
The company released its first-quarter earnings after a particularly bad week, with its shares falling to record lows following news that one of its main investors, Ford, was selling about 8 percent of its shares in Rivian. The company’s share price is down more than 78 percent since the start of the year.
Rivian’s stock price has been falling since its historic IPO last year, when the company debuted on the public market with an overall valuation of more than $80 billion. Since then, supply chain constraints and manufacturing issues have slowed down your progress. Like other automakers, Rivian has struggled to secure the materials needed to make lithium-ion batteries for its vehicles, as well as the semiconductor chips needed to power many of its high-tech features.
But in a call with investors, Rivian CEO RJ Scaringe said the end of supply chain disruptions is near. “We think we’ve really seen the worst, or kind of a valley, if you will, of supply constraints,” Scaringe said. “And the providers are supported.”
Adam Jonas, an analyst at Morgan Stanley, noted that Rivian’s enterprise value, which is essentially its market capitalization minus net cash, is “currently just above zero dollars.” This sends the message to investors that unless Rivian can control its supply chain, it may have to dilute shareholders.
In response, Rivian CFO Claire McDonough said Rivian has $17 billion in cash on hand, which should allow it to ramp up production at its Normal, Illinois plant to the point of profitability.
“We have the ability to live within our means,” he added, “as we think about the profitability that Normal itself can bring to Rivian that will allow us to really set the pace for the continued growth of the business and ultimately allow us to have that flexibility on when and how we would raise additional capital in the future.”
Rivian has responded by backing off its ambitions and keeping a more modest schedule for the rest of the year. only produces 25,000 vehicles in the course of 2022, according to his previous earnings report. In its first-quarter earnings, Rivian says it’s still on track to produce that number of vehicles this year.
Rivian CEO RJ Scaringe said the company has $17 billion in cash on hand and remains on track to launch its next EV platform, R2, at a new factory in Georgia in 2025. R2 will serve as the basis for a new, Compact SUV that Rivian says will be more affordable than its first two vehicles, both of which retail for more than $70,000. The company’s R1 platform is the twin-motor architecture that underpins the R1T pickup and R1S SUV.
In the first quarter, Rivian produced 2,553 vehicles, but only delivered 1,227 of those vehicles to customers. When asked about this gap, McDonough said it was a result of being a direct-to-consumer company without a traditional dealer network to serve as distribution centers.
The gains also come as Ford has begun delivering the first Electric F-150 Lightning Pickups To customers. While Rivian has the distinction of being the first to bring its electric truck, the R1T, to market, Ford’s electrified F-series is expected to lead more customers to consider switching to electric vehicles.