Rivian Boosts 2022 Loss Forecast to $5.45 Billion Amid Supply Chain Woes
Rivian maintains its target of delivering 25,000 electric vehicles this year despite expecting an extra $700 million in cash burn. The automaker reports rising preorders and a Q2 revenue beat as it navigates inflation and recent layoffs.
Rivian keeps its goal of delivering 25,000 electric vehicles by the end of the year, but the automaker now anticipates burning an extra $700 million to reach that target. The company reveals in its second-quarter earnings report that it expects a total net loss of $5.45 billion in 2022, a significant increase from its previous estimate of $4.75 billion. Rivian blames this upward revision on persistent supply chain challenges and raw material inflation.
Despite the growing losses, Rivian beats analysts' revenue expectations by generating $364 million in the second quarter. The company delivers 4,467 vehicles during this period, which include its consumer trucks and SUVs as well as electric vans built for Amazon. Customer demand continues to climb, pushing the backlog of preorders to 98,000 vehicles by the end of June.
To navigate a challenging economic environment, Rivian lays off about 6% of its workforce last month, though its manufacturing operations team at the Normal, Illinois plant remains unaffected. The company also strengthens its leadership by appointing former Bosch and Daimler executive Harald Kroeger to its board. Meanwhile, Rivian stock shows recovery as shares close at $38.95, reflecting a 4% increase that creates distance from its 52-week low following Ford's massive share dump in May.