Details for Rivian’s third-quarter performance are in. The automaker reported a $1.23 billion net loss in the third quarter due to costs associated with beginning and ramping up production of its R1T electric adventure pickup truck
In its first public earnings report since its initial stock offering, the company stated that it lost $12.21 per share for the quarter. The delivery of 11 pickups generated $1 million in revenue.
The loss occurred approximately one month after the company’s $13.7 billion initial public offering in November.
The earnings report also showed that net orders for its R1T electric pickup had reached 71,000 as of Wednesday.
After-hours trading saw the company’s stock drop more than 10% to $97.94, following a 5.3 percent drop during business hours.
The company also said it lost $2.23 billion for the first nine months of the year.
Rivian blamed losses mainly on labor and overhead costs as it ramps up large-scale production at its factory in Normal, Illinois.
“In the near term, we expect this dynamic — of vehicle production being significantly less than our manufacturing capacity — will continue to have a negative drag on gross profit as we ramp production of the R1T, R1S and EDV commercial van,” Rivian said in a statement.
The company also confirmed in the earnings report that it would build a second factory in the United States east of Atlanta, capable of producing up to 400,000 vehicles per year. Production is expected to begin in 2024, with the plant eventually employing more than 7,500 people.
Rivian was valued higher than both General Motors and Ford following its initial public offering.
