During “much” of the second quarter, they were unable to fully utilize their production line, Rivian CEO RJ Scarring said in a call with investors.
“We couldn’t run an entire single shift because of component supply,” Schaering said.
Rivian expects supply chain shortages to continue to limit its growth, but it is confident enough in the improved outlook that it expects to add a second shift at its General, Illinois, manufacturing plant later this year. Scaringe expressed confidence that production rates will continue to grow as increasing the number of vehicles rolling out of the factory doors is critical to achieving profitability.
Rivian, it has massive support Amazon (AMZN), had 98,000 preorders in the US and Canada by the end of June, and it said its rate of preorders has increased this year. The automaker said most new buyers for its pick-up truck, the R1T, had never owned a pick-up truck before.
The heavy losses are in line with Rivian’s expectations for the year. It said the losses were caused by investments in people, technology and vehicle programs.
Rivian laid off 6% of its workforce in July, citing inflation and rising interest rates.
Rivian produced 4,401 vehicles and delivered 4,467 vehicles in the second quarter, and its output was up 72% from the first quarter of the year when it produced 2,553 vehicles. The automaker plans to produce 25,000 units this year. Rivian stock fell 2% in after-hours trading.
The automaker still has more than $15 billion in cash to finance its operations, which it says is enough to finance the upcoming Georgia manufacturing plant and a new vehicle platform called the R2.
The company said its delivery vehicles have carried more than 430,000 packages for Amazon since the start of 2021.
Claire McDonough, Rivian’s chief financial officer, said the automaker will introduce a lithium iron phosphate battery pack in its delivery vehicles. Battery chemistry has become increasingly popular among automakers as they face shortages of battery metals.