Rivian Automotive released their financial results for the second quarter of 2022, and Rivian continues to spend more cash than before.
Rivian posted revenue of $364 million, while it posted a net loss of $1.71 billion, an increase from $580 million the year before. This comes during the same quarter when capital expenditures fell to $359 million, down from $431 million in the recent past.
Rivian said it now expects to post a wider annual adjusted loss before interest, taxes, depreciation and amortization of $5.45 billion, compared to the previous estimate of $4.75 billion.
Rivian burned through $1.2 billion in the second quarter of this year but said it still had $14.9 billion in cash as of June 30th, enough to cover the $5 billion allocated to open another plant in Georgia by 2025.
Rivian has determined that the company must hold off on some programs until 2023 and implement cost-cutting measures without providing details.
The company also states it seeks to prioritize spending on increased output and developing the R2 platform for the Georgia plant.
The startup says it has already received a total of 98,000 preorders for the R1T pickup and the R1S SUV from the United States and Canada.
The company also received an initial order for 100,000 electric delivery vans from Amazon which received the first batch of these vehicles last month.
The Inflation Reduction Act bill passed by the US Senate is not likely to create incentives for Rivian’s R1T and R1S. However, Rivian states that it could be eligible for up to $40,000 in subsidies for electric commercial vans like those that are currently being developed for Amazon.
The company’s next line of realistic and new consumer vehicles could qualify for a VAT exemption because they will rely on domestic batteries.
Rivian maintains a production forecast of 25,000 units in 2019. In Q2 2022, the EV maker built 4,401 vehicles and delivered 4,467 — most of them R1T electric pickups. Since the start of production at the plant in Normal, Illinois, Rivian has built around 8,000 vehicles so far (R1T, R1S and EDV combined)