Photo: Rivian | Edited
Rivian confirmed investors' worries regarding cash burn, posting a huge net loss in 2022. At the same time, the company's financials showed a lower-than-expected performance as the startup delivered much fewer vehicles than it produced in 2022. Rivian has issued guidance for a 50,000-unit production target for 2023, twice as much as last year.
Rivian entered the EV market as one of the most promising startups, but it appears to have run out of luck in 2022. The startup was hit by supply chain problems more than other car companies, and, despite having a huge pile of cash, it struggled to deliver on its promises. The EV startup initially set a 50,000 production target in 2022 but had to cut it in half when the problems mounted. Even the 25,000 target was narrowly missed, although Rivian argued that it had the vehicles in inventory, just missing some parts.
More disturbingly, Rivian failed to find customers for around 2,000 vehicles it produced in the fourth quarter, affecting its revenues. The company reported revenue of $663 million in Q4 2022, slightly higher than the Q3 figure of $536 million but below analyst expectations of $742 million. As expected, the net loss amounted to $1.7 billion in the year's final three months, with a grand total of $6.75 billion for the entire year. This is 44% more than the losses reported in 2021, and Rivian explained that they were generated mainly by the costs associated with ramping up production.
The good news is that the operating expenses remained stable in 2022, at $3,73 billion compared to $3.76 billion in 2021. Rivian ended the year with $12.1 billion in cash or cash equivalents, roughly $2 billion less than it reported in October 2022. It should be enough to weather whatever the market throws at it in the next couple of years, but Rivian needs to get its act together and start generating some cash on its own if it wants to survive.
On the plus side, Rivian shared a positive view of 2023, highlighting the cost-cutting measures it took last year and better economic prospects. This prompted the company to issue guidance for a 50,000-unit production target in 2023, twice as much as last year. This is lower than analysts expected and is far from guaranteed if we look at the 2022 guidance. Investors also hoped for a shorter path to profitability.
Rivian shared details about future projects, including its Enduro drive motor and the Max Pack battery everyone expects. The Enduro drive unit will first be installed under the hood of the EDV delivery van in a single-motor configuration. Later this year, it will appear in the dual-motor versions of the R1 family. Deliveries of the 400-mile (643-km) R1 Max Pack variants will also start in fall 2023. An interesting detail is that Rivian plans to use LFP cells in a new battery pack for the EDV.
More disturbingly, Rivian failed to find customers for around 2,000 vehicles it produced in the fourth quarter, affecting its revenues. The company reported revenue of $663 million in Q4 2022, slightly higher than the Q3 figure of $536 million but below analyst expectations of $742 million. As expected, the net loss amounted to $1.7 billion in the year's final three months, with a grand total of $6.75 billion for the entire year. This is 44% more than the losses reported in 2021, and Rivian explained that they were generated mainly by the costs associated with ramping up production.
The good news is that the operating expenses remained stable in 2022, at $3,73 billion compared to $3.76 billion in 2021. Rivian ended the year with $12.1 billion in cash or cash equivalents, roughly $2 billion less than it reported in October 2022. It should be enough to weather whatever the market throws at it in the next couple of years, but Rivian needs to get its act together and start generating some cash on its own if it wants to survive.
On the plus side, Rivian shared a positive view of 2023, highlighting the cost-cutting measures it took last year and better economic prospects. This prompted the company to issue guidance for a 50,000-unit production target in 2023, twice as much as last year. This is lower than analysts expected and is far from guaranteed if we look at the 2022 guidance. Investors also hoped for a shorter path to profitability.
Rivian shared details about future projects, including its Enduro drive motor and the Max Pack battery everyone expects. The Enduro drive unit will first be installed under the hood of the EDV delivery van in a single-motor configuration. Later this year, it will appear in the dual-motor versions of the R1 family. Deliveries of the 400-mile (643-km) R1 Max Pack variants will also start in fall 2023. An interesting detail is that Rivian plans to use LFP cells in a new battery pack for the EDV.
Google News