Rivian, the EV startup that went public in one of the largest IPOs in US history last year, broke the trend of Tesla and other EV makers in the first half of the year.
Tesla, the world’s largest EV maker, reported two consecutive quarters of supply declines due to supply chain delays and COVID-related lockdowns in Shanghai that hampered production at its Gigafactory there.
Lucid has cut its production forecast for 2022 several times this year, now targeting 6,000 to 7,000 vehicles, less than its original plan to build 20,000. Britain’s Arrival said on Thursday it is lowering its target for 2022 from 400 to 600 vehicles to just 20.
Meanwhile, Rivian, which has set a goal of eventually owning more than 10% of the global market, said it has ramped up production this year so far — a mix of the Rivian R1T pickup, R1S SUV and the EDV. commercial electric vans. for Amazon – and reaffirmed its target to deliver 25,000 vehicles this year.
However, the Irvine, California-based manufacturer faces the same financial pressures that are hitting the auto industry. In July, it began laying off 900 employees – about 6% of the workforce – as part of a restructuring plan.
We’re tuning in to Rivian’s second-quarter financial results after the market closes Thursday to see how it plans to deal with the industry’s headwinds, including lingering supply chain issues and manufacturing hurdles.
What analysts and londonbusinessblog.com are looking for?
According to data from Yahoo Finance, analysts expect Rivian to generate revenue of $337.52 million in the second quarter of 2022, more than triple the $95 million it reported for the first quarter of the year. Rivian didn’t start monetizing until the third quarter of 2021.
We tune in for news of Rivian’s layoffs, which affect every department, with one major exception: manufacturing operations at the Normal, Illinois plant.
“We need to be able to continue to grow and scale in this macro environment without additional funding,” CEO RJ Scaringe wrote in an internal email. “To achieve this, we have simplified our product roadmap and focused on where it will have the most impact to to invest capital.”
The automaker could provide updates Thursday on its quarterly call with analysts and lay out the details of its overall plan to cut costs.
Amazon, Rivian’s largest customer, began delivering parcels with its EDV commercial electric vans in July.
The initial rollout includes routes in Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle and St. Louis, and will cover more than 100 cities by the end of the year, according to Amazon. The company aims to have more than 100,000 EV vans on the road by 2030.
We’ll be listening on Thursday for advice on Rivian’s plans to supply more vans to Amazon, which owns an 18% stake in the company, as well as any initial findings Rivian has gathered so far about the performance, safety and durability of the vehicle. van in different climates and geographies.
We will also be looking for an update on Rivian’s new plant near Atlanta, which has received Georgia’s largest-ever $1.5 billion stimulus package. The second plant is expected to go into operation this summer and start production in 2024.
Until then, the automaker plans to develop its future R2 platform, as well as improve the R1 platform underlying its electric truck and SUV.
Rivian has said its new lithium iron phosphate (LFP) battery pack will launch in its commercial vehicles for Amazon later this year and serve as the standard architecture for R1T pickups and R1S SUVs from late 2023.