Rivian posts $1.23 billion third-quarter loss

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.

Hanson F.https://thevolter.com
Hanson is a lover of electric cars especially Rivian. He is a contributor for The Volter as well as other news hubs

Latest articles

Rivian Just Delayed the R1S Again: Here is Why

Events and anticipative speculations showed that Rivian was going to start deliveries of its R1S electric adventure SUV anytime soon. But to the disappointment...

We combed Through the Entire Rivian R1S User Guide and This is What we Found

We have been waiting with so much anticipation to see the R1S deliveries begin. Signs that the deliveries are soon to begin are coming...

How Long Does It Take To Charge A Rivian?

Like other EVs, Rivian cars are not only prestigious but also environmentally friendly and cost-effective as they do not need gasoline. Because they do...

Rivian’s Strategy to Overcome the Upcoming Battery Shortage

(adsbygoogle = window.adsbygoogle || ).push({}); This has got to be the worst time for a startup automaker to begin production...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here