Rivian Beats Revenue Expectations Despite Raising Annual Loss Forecast
Rivian reports stronger than expected Q2 revenue and growing vehicle demand, but increases its 2022 loss projection to $5.45 billion due to supply chain issues and inflation.
Rivian beats analyst expectations for second-quarter revenue by bringing in $364 million, but the electric vehicle maker reports a significant $1.71 billion loss for the quarter. The company delivers 4,467 vehicles during Q2, which include its consumer trucks, SUVs, and commercial vans built for Amazon, bringing its total first-half deliveries to 5,694 vehicles.
To maintain its goal of delivering 25,000 vehicles by the end of the year, Rivian raises its projected 2022 net loss from $4.75 billion to $5.45 billion. The automaker blames this $700 million increase on persistent supply chain challenges and rising raw material inflation, though consumer demand remains strong with a preorder backlog of 98,000 vehicles.
The company undergoes recent structural changes to navigate the challenging economic environment, including laying off 6% of its non-manufacturing workforce last month. Despite these hurdles and a previous stock slump triggered by Ford selling off shares, Rivian's stock recovers to $38.95 and the company adds former Bosch and Daimler executive Harald Kroeger to its board of directors.