Rivian reports more losses in the second quarter of 2022

Photo by Nilay Patel / The Verge

The electric vehicle company, backed by Ford and Amazon, had a net loss of over $1 billion in the second quarter of 2022. It's a sign that Rivian's business is picking up speed, albeit slowly, compared to the previous quarter in which Rivian reported a net loss of $1.59 billion.

The EV maker was founded on a promise to upend the auto industry with beautifully designed, emissions-free, adventure-themed trucks and SUVs but has run into some speed bumps along the way

Rivian said it made 4,401 vehicles during the three-month period, a 72 percent increase over the previous quarter, and delivered 4,467 vehicles, a 267 percent increase. The electric delivery van that is being built for Amazon is not broken down by the company. The R1S SUV's deliveries were delayed.

If it is to meet its goal of 25,000 built this year, the company will need to make 18,06 vehicles over the next eight months. It will be no small task but it is possible. Rivian said that it has more than 80,000 reservations for the R1T and R1S vehicles. About 98,000 reservations have been reported by the automaker.

The company had to contend with rough waters to get here. Around 800 people were laid off at Rivian last month due to a need to cut costs in order to speed up the development of future electric trucks and SUVs.

Rivian was showing some signs of improvement, according to the analyst. Rivian is starting to find their sea legs after experiencing major issues out of the gate, and has the potential to be a major EV stalwart over the next decade.

Rivian is scrambling to respond to the news that the revised EV tax credits will change the landscape for EV buyers. Under the new climate bill put forward by Senate Democrats, more expensive electric vehicles would not be eligible for the tax credit.

Rivian's electric truck and SUV configurations will most likely be too expensive to qualify for the credit. Rivian's stock price plummeted and its CEO issued a public apology after the company bumped up the prices on both of its models.

In response, the company sent emails to customers and posted a support response on its website that advised them to sign a binding contract before the bill went into effect. It can't guarantee eligibility for the incentive

According to Rivian, it has over 15 billion dollars in cash on hand. If the automaker expects bigger losses for the year, that will be very helpful.

The person is developing.