Skip to main content

Rivian reports more losses in the second quarter of 2022

Rivian reports more losses in the second quarter of 2022

/

The automaker falters further through difficult months that included about 800 layoffs

Share this story

A white Rivian R1S from the front
Photo by Nilay Patel / The Verge

Rivian, the buzzy electric vehicle company backed by Ford and Amazon, reported a net loss of $1.71 billion in the second quarter of 2022 based on $364 million in revenue. It’s a sign that Rivian’s nascent EV business is picking up speed, albeit slowly compared to the previous quarter in which Rivian reported a net loss of $1.59 billion based on $95 million in revenue. Still, the company beat Wall Street expectations for revenue by about $26 million.

The earnings report was also an indication that Rivian still has a ways to go before it can deliver on its promise to upend the auto industry with beautifully designed, emissions-free, adventure-themed trucks and SUVs. The automaker said it expects to burn through $700 million in additional cash before the end of the year.

The earnings report comes on the heels of a positive production update in which Rivian said it made 4,401 vehicles during the three-month period, a 72 percent increase over the previous quarter, and delivered 4,467 vehicles, a 267 percent increase. The company didn’t provide a breakdown between R1T trucks and its electric delivery van (EDV) that is being built for Amazon. (Deliveries of the R1S SUV were delayed until later this year.)

The earnings report comes on the heels of a positive production update

The company will still need to churn out 18,046 vehicles over the next eight months if it’s to meet its goal of 25,000 built this year, or roughly 9,023 vehicles per quarter. That will be no small task but is certainly within the realm of possibility. During the last earnings call, Rivian said that it has more than 90,000 reservations for the R1T and R1S vehicles. Now, the automaker reports that it has increased to about 98,000 reservations.

Still, the company has had to weather some rough waters to get here. Last month, Rivian laid off around 6 percent of its 14,000 employees, or around 800 people, citing a need to cut costs in order to speed up development of future versions of its electric trucks and SUVs.

Ahead of the earnings report, Wedbush’s Dan Ives said that Rivian was showing some signs of improvement. After experiencing “major issues out of the gates,” Rivian is “starting to find their sea legs,” Ives wrote in a note, adding that the company has the potential “to be a major EV stalwart over the next decade.”

But a recent price hike and the news that the revised EV tax credits would alter the landscape for EV buyers has Rivian scrambling to respond. Under the new climate bill put forward by Senate Democrats, pricier EVs (sedans that are over $55,000 for new cars and pickup trucks and SUVs over $80,000) would be ineligible for the $7,500 tax credit.

Some configurations of Rivian’s electric truck and SUV will almost certainly be too expensive to qualify for the credit, which could depress demand. Rivian also bumped up the prices on both of its models by 20 percent, sending its stock price tumbling and forcing CEO RJ Scaringe to issue a public apology.

In response, the company sent emails to customers and posted a support response on its website advising them to sign a “binding contract” before the bill goes into effect in order to lock in their $7,500 tax credit. But it also admits that it can’t “guarantee eligibility” for the incentive.

Rivian reports that it has $15.5 billion in cash on hand. That’ll be very helpful for the automaker if it’s expecting even bigger losses for the year.

Today’s Storystream

Feed refreshed 35 minutes ago Midjourneys

R
External Link
Russell Brandom35 minutes ago
Oracle will pay $23 million to settle foreign bribery charges.

The SEC alleges that Oracle used a slush fund to bribe officials in India, Turkey and the United Arab Emirates. This behavior is sadly common among software companies doing business overseas, and it’s not unique to Oracle. In March, a former Microsoft executive claimed the company spent as much as $200 million a year in bribes for foreign officials.


E
External Link
Emma Roth3:16 PM UTC
Celsius’ CEO is out.

Alex Mashinsky, the head of the bankrupt crypto lending firm Celsius, announced his resignation today, but not after patting himself on the back for working “tirelessly to help the company.”

In Mashinsky’s eyes, I guess that means designing “Unbankrupt yourself” t-shirts on Cafepress and then selling them to a user base that just had their funds vaporized.

At least customers of the embattled Voyager Digital crypto firm are in slightly better shape, as the Sam Bankman-Fried-owned FTX just bought out the company’s assets.


M
Twitter
Mary Beth Griggs2:46 PM UTC
NASA’s SLS rocket is secure as Hurricane Ian barrels towards Florida.

The rocket — and the Orion spacecraft on top — are now back inside the massive Vehicle Assembly Building. Facing menacing forecasts, NASA decided to roll it away from the launchpad yesterday.


A
External Link
Andrew J. Hawkins1:30 PM UTC
Harley-Davidson’s electric motorcycle brand is about to go public via SPAC

LiveWire has completed its merger with a blank-check company and will make its debut on the New York Stock Exchange today. Harley-Davison CEO Jochen Zeitz called it “a proud and exciting milestone for LiveWire towards its ambition to become the most desirable electric motorcycle brand in the world.” Hopefully it also manages to avoid the cash crunch of other EV SPACs, like Canoo, Arrival, Faraday Future, and Lordstown.


A
The Verge
Andrew Webster1:06 PM UTC
“There’s an endless array of drama going on surrounding Twitch right now.”

That’s Ryan Morrison, CEO of Evolved Talent Agency, which represents some of the biggest streamers around. And he’s right — as you can read in this investigation from my colleague Ash Parrish, who looked into just what’s going on with Amazon’s livestreaming service.


R
The Verge
Richard Lawler12:59 PM UTC
Green light.

NASA’s spacecraft crashed, and everyone is very happy about it.

Otherwise, Mitchell Clark is kicking off the day with a deeper look at Dish Network’s definitely-real 5G wireless service , and Walmart’s metaverse vision in Roblox is not looking good at all.


J
External Link
Jess Weatherbed11:49 AM UTC
Won’t anyone think of the billionaires?

Forbes reports that rising inflation and falling stock prices have collectively cost members of the Forbes 400 US rich list $500 billion in 2022 with tech tycoons suffering the biggest losses.

Jeff Bezos (worth $151 billion) lost $50 billion, Google’s Larry Page and Sergey Brin (worth a collective $182b) lost almost $60b, Mark Zuckerberg (worth $57.7b) lost $76.8b, and Twitter co-founder Jack Dorsey (worth $4.5b) lost $10.4b. Former Microsoft CEO Steve Ballmer (worth $83b) lost $13.5b while his ex-boss Bill Gates (worth $106b) lost $28b, albeit $20b of that via charity donations.


T
Thomas Ricker6:45 AM UTC
Check out this delightful DART Easter egg.

Just Google for “NASA DART.” You’re welcome.