By HOI ABC
NORMAL – Rivian Automotive said it lost $1.59 billion in the first quarter of this year even as the company works to ramp up production of electric powered vehicles at its plant in Normal.
“As we produce vehicles at low volumes on production lines designed for higher volumes, we have and will continue to experience negative gross profit related to significant labor and overhead costs. This dynamic will continue in the near term,” Rivian said in a quarterly letter to shareholders.
Rivian released its first quarter earnings Wednesday reporting revenue of $95 million, having delivered 1,227 electric vehicles during the three-month period.
Rivian said it produced 2,553 vehicles during the first quarter, bringing the total number of vehicles produced in Normal to about 5,000 as of May 9.
The automaker reports it has more than 90,000 preorders in the U.S. and Canada. Since raising prices in March, Rivian said it has received more than 10,000 preorders with an average price of over $93,000. In addition, Rivian-investor Amazon has ordered 100,000 electric powered commercial vans.
“We’ve done all of this in one of the most challenging operating environments in decades,” said RJ Scaringe, Rivian’s founder, chairman, and chief executive officer in a conference call on Wednesday.
Rivian’s share price has tumbled from over $100 per share at the time of its initial public offering last November to $20.60 per share in after-hours trading on Wednesday.
“We believe that the supply chain constraints will continue to be the limiting factor of our production,” the company said in the letter to shareholders.
“Our top priority for 2022 remains ramping production in our Normal, Illinois production facility,” Rivian said. The company also plans over the medium term to “employ learnings” from the plant in Normal when building its second factory in Georgia.