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Rivian losses surge to $1.7 billion as production ramps up

(CNN Business)Rivian said Thursday it lost $1.7 billion in the second quarter of 2022. Production amid the ongoing supply chain crisis. The automaker's losses more than doubled from the same period last year, when he lost $580 million.

Rivian's CEO, RJ Scaringe, said on a conference call with investors that production lines were underutilized during "a lot" of the second quarter. .

"We couldn't even run a full shift because of component supplies," he said Scaringe.

Rivian expects supply chain shortages to continue to limit growth, but is fully confident in its improved prospects and is It said it plans to add a second shift later this year. Scaringe said he is confident production rates will continue to grow as more vehicles leave the factory door is critical to achieving profitability.
With strong backing from Amazon (AMZN), Rivian has 98,000 There are pre-orders,Canada said at the end of June that the percentage of pre-orders has increased this year. The majority of new R1T buyers have never owned a pickup truck before, the automaker says.

The heavy losses are in line with Rivian's expectations for this year. It said the loss was due to investments in people, technology and vehicle programs.

Rivian laid off his 6% of its workforce in July, citing rising inflation and interest rates.

In the second quarter, Rivian produced 4,401 vehicles and delivered 4,467 vehicles. That output is up 72% from the first quarter of this year, when he produced 2,553 vehicles. The automaker plans to produce 25,000 units this year. Rivian's stock fell 2% in after-hours trading.

Automakers still have more than $15 billion in cash to fund their operations, including an upcoming manufacturing plant in Georgia and a new vehicle platform called R2. said it was sufficient to raise funds for

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

Rivian Chief Financial Officer Claire McDonough said automakers are installinglithium iron phosphatebattery packs in delivery vehicles. Battery chemistries are becoming increasingly popular among automakersas they face shortages of battery metals.