Photo: AP News Photo
Electric Vehicle startup Rivian posted a $1.23 billion net loss in its third-quarter due to production constraints, and supply-chain snags of its first fully-electric truck. The automotive company’s stock tanked late Thursday after posting its first financial snapshot as a public company.
Rivian Automotive Inc. said in its first public earnings report since its initial stock offering that it had lost $1.2 billion or $12.21 per share for the quarter. The revenue is $1 million from the delivery of 11 electric trucks. This is in comparison to a year ago-quarter loss of $288 million or $2.88 a share on higher operating losses.
In a letter to shareholders, the automaker stated that it lost an adjusted $766 million in the quarter, not specifying the per-share amount. It added that the net orders of its pioneer electric R1T truck had increased to 71,000 by Wednesday from 48,000 pre-orders in September.
The company’s shares dropped more than 10% to $97.94 in the after-hours trading after initially dropping 5.3% in business hours. Rivian also said that it had lost a total of $2.23 billion in the first nine months of the year.
During a call with an analyst Rivian CEO, RJ Scaringe explained that demand for their trucks is not a problem. Thanks to production constraints, an order of one of their electric trucks placed today will most likely get delivered in 2023.
Scaringe believes none of the supply chain issues Rivian is facing are long-term and feels they are solvable problems.
Rivian has taken the automobile all-electric truck segment by storm. They beat industry leaders Tesla and Ford putting a stamp as the first automaker to bring a fully electric truck to the consumer market.
Rivian is riding on a market need for an EV truck with extreme off-road capability and functionality. Their pioneer truck, the Rivian R1T, is a proven, rugged, unrelenting off-road pickup truck designed to get down and dirty - a first in the EV market segment line.
In a letter to shareholders, the automaker stated that it lost an adjusted $766 million in the quarter, not specifying the per-share amount. It added that the net orders of its pioneer electric R1T truck had increased to 71,000 by Wednesday from 48,000 pre-orders in September.
The company’s shares dropped more than 10% to $97.94 in the after-hours trading after initially dropping 5.3% in business hours. Rivian also said that it had lost a total of $2.23 billion in the first nine months of the year.
During a call with an analyst Rivian CEO, RJ Scaringe explained that demand for their trucks is not a problem. Thanks to production constraints, an order of one of their electric trucks placed today will most likely get delivered in 2023.
Scaringe believes none of the supply chain issues Rivian is facing are long-term and feels they are solvable problems.
Rivian has taken the automobile all-electric truck segment by storm. They beat industry leaders Tesla and Ford putting a stamp as the first automaker to bring a fully electric truck to the consumer market.
Rivian is riding on a market need for an EV truck with extreme off-road capability and functionality. Their pioneer truck, the Rivian R1T, is a proven, rugged, unrelenting off-road pickup truck designed to get down and dirty - a first in the EV market segment line.
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