Rivian losses surge to $1.7 billion as production ramps up

Rivian expects supply chain shortages to continue to limit its growth, but it’s confident enough in an improved outlook that it said it expects to add a second shift at its Normal, Illinois, manufacturing plant later this year. Scaringe expressed confidence the production rate will continue to grow, as increasing the number of vehicles making it out of the factory doors is critical to achieving profitability.

Rivian, which has heavy backing from Amazon (AMZN), had 98,000 preorders in the US and Canada at the end of June, and it said its rate of preorders has increased this year. The majority of new buyers for its pick-up truck, the R1T, have never owned a pick-up truck before, the automaker said.

The hefty losses are in line with Rivian’s expectations for the year. It said the losses stemmed from its investment in people, technology and vehicle programs.

Rivian produced 4,401 vehicles in the second quarter and delivered 4,467 vehicles, and its production increased 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’s stock fell 2% in after-hours trading.

The automaker still has more than $15 billion in cash to finance its operations, which it says will be enough to finance its upcoming Georgia manufacturing plant and a new vehicle platform, dubbed R2.

The company also said that its delivery vehicles have carried more than 430,000 packages for Amazon since early 2021.