Rivian is quickly discovering how costly it is to enter the automotive industry, reporting a net loss of $ 1.59 billion in the first quarter.
EV Startup’s quarterly losses increased significantly from the $ 414 million posted in the first quarter of last year. They came primarily from higher operating costs, with the Revian quarter spending $ 547 million on research and development, compared to 21 121 million in 2021.
Read more: Revian will produce 25,000 EVs this year, saving 10,000 since the price increase
As confirmed earlier this week, Revian built 2,553 vehicles in Q1 and delivered 1,227 of them, helping it generate $ 95 million in revenue. The company notes that while it continues to “produce low-volume vehicles on production lines designed for high volume,” it will continue to experience negative gross profit due to significant labor and overhead costs. Rivian expects costs to improve on a per-vehicle basis as production increases and labor and overhead costs grow faster than growth.
Rivian confirmed in a letter to shareholders, “The supply chain has become a barrier to our production.” “This challenge continues across a handful of technical components, such as semiconductors, as well as some non-semiconductor components. A quarter is lost. “
While the big losses may not look good on paper, Revian ended Q1 2022 with 16 16.97 billion in cash, cash equivalents and limited cash, excluding additional credit lines. This is enough money for the company to start production of the more affordable, next-generation EV sets made at its future plant in Georgia.
Revian expects to have 25,000 cars by the end of this year.