Rivian has fallen in price, but does not see big problems

Rivian has fallen in price, but does not see big problems

FineAuto

American EV startup Rivian, which recently had a very successful initial public offering, released its first quarterly report as a public company. In three months, the aspiring manufacturer predictably generated a net loss of $ 1.23 billion.

More importantly, the company admitted that it would not have time, as it intended, to produce 1200 cars by the end of the year: several hundred units will not be enough for it to reach the target. On the news, Rivian shares fell 10%, Bloomberg noted. At the same time, by the close of trading, the company was still worth almost $ 100 billion – 40% more than the valuation at the IPO and is still more expensive than General Motors or Ford. The latter, by the way, is a major investor in the startup.

During a conference call with analysts, Rivian CEO RJ Scaring said that the company had difficulties in ramping up production, but there were no long-term systemic problems in the supply chain, it was just that launching two models at the same time was not so easy.

Recall that this September the brand put on the conveyor the Rivian R1T pickup, ahead of all competitors, including Tesla, and in December it was joined by the Rivian R1S off-road vehicle. The number of orders for these two electric vehicles has grown from 55,400 to 71,000 since the end of October to date. Those who are just going to issue an application will have to wait for their car until at least 2023. Including – due to the fact that the priority for Rivian is the execution of an order for 100 thousand delivery vans for Amazon, another of its investors.

Currently, the staff of Rivian has already exceeded 10 thousand people, while so far the startup has only one plant in Illinois, previously owned by Mitsubishi. Construction of a second factory in Georgia will begin next summer. Electric vehicles and batteries for them will be made there. In addition, the company confirmed its intention to deploy its own network of 600 fast charging stations.

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