Rivian, the electric vehicle manufacturer which went public in the biggest IPO of last year, has reaffirmed its expectation to deliver 25,000 vehicles this year, as it posted a giant loss in its quarterly report.
The company revealed supply chain issues were hindering its attempts to ramp up production fully, but maintained it would hit its annual target.
“Supply chain continues to be the limiting factor of our production,” the company said in a statement. “However, through close partnership with our suppliers we are making progress.”
In the second quarter, Rivian delivered 4,467 vehicles, meaning it has now delivered 5,694 vehicles so far this year, still way off its target.
Rivian revised its guidance in its Q2 earnings report, telling investors it expected losses to reach $5.45 billion in 2022, up from the previous forecast of $4.75 billion given three months earlier. In the last quarter, Rivian lost $1.71 billion. The company blamed the losses on supply chain challenges and raw material inflation.
The automaker generated $364 million in revenue during the quarter, up from $95 million in the first three months of 2022. Customer reservations reached 98,000 vehicles by the end of June.
Rivian enjoyed a meteoric rise before crashing back to Earth. The company attracted billions of dollars of investment while it was private, from the likes of Ford and Amazon, which announced it would buy 100,000 of Rivian’s electric delivery vans. The company also planned to build SUVs and electric trucks, an area of the market which would separate it from major competitors like Tesla.
Rivian’s IPO in 2021 was the largest of the year, and its stock price soon soared until its market value was higher than that of Ford and General Motors combined. But production issues soon struck, and the stock price plummeted. Now production is recovering, the market is a lot more competitive, as several traditional automakers have revealed plans to sell electric SUVs and pickup trucks.
Last month, Rivian began laying off 6% of its workforce as part of a restructuring plan.