Rivian has a loss-making quarter but EV production continues to increase

Fiscal results not easy to digest those of Rivian, an American company engaged in the production of electric cars that has Ford and Amazon among its financiers. Rivian ended its fiscal second quarter with a net loss of $ 1.71 billion, with a turnover of 364 million dollars. Put another way, for every dollar he billed, Rivian lost just under 4.7.

Wanting to look at the glass half full must not escape the fact that Rivian was able to significantly increase its sales during the second quarter of the year: in the first 3 months of 2022 the company had in fact achieved sales of 95 million dollars.

Rivian completed construction of 4,401 vehicles in the second quarter of the yearan increase of 72% compared to the previous 3 months. In Q2 2022 Rivian delivered 4,467 cars to customers, an increase of 267% compared to the previous quarter. At the present time the company produces the R1T pick-up and the van specifically developed for the deliveries by Amazon.

Rivian’s 2022 production target has been set at 25,000 cars; the company currently has around 98,000 reservations for its cars from interested customers, so the limit does not seem to be represented by demand but by production capacity.

It is not conceivable that Rivian will reach the breakeven point in the short termand the company itself confirms it, anticipating that before the end of the year it will have an impact on its cash flow of 700 million dollars due to costs higher than the turnover for the period.

In any case, even with financial results that continue to indicate a persistent red, Rivian has his shoulders definitely covered: It still has approximately $ 15.5 billion of cash available, with which it will be able to successfully manage many more quarters in the red before hopefully starting to generate profits.

The story of a bit of all manufacturers engaged in the construction of fully electric cars speaks of one initial phase during which negative financial results are generated by burning a lot of cash; if the development plans prove to be correct, a turning point is reached, after which the company generates profits. It has been like this for years for Teslawhich in recent years has been very close to bankruptcy, and presumably it will also be for Rivian: on its side an interesting market demand and a very important cash availability, thanks to the financiers.