Rivian Automotive has released the financial results for the second quarter of 2022, and the company continues to burn through cash at an even higher rate than before.
The EV startup posted a revenue of $364 million in Q2 while its net loss widened to $1.71 billion, from $580 million the year before. Meanwhile, capital expenses in the quarter fell to $359 million, from $431 million a year earlier, when Rivian was readying its assembly plant in Illinois for the start of production.
The company warned that 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 30, enough to cover the $5 billion allocated to open a second US assembly plant in Georgia in 2025.
To help conserve cash as output increases, Rivian said it has delayed some programs to 2023 and implemented cost-cutting measures to realign spending priorities, without providing details. The company also said it seeks to optimize spending on increasing output and developing the R2 platform for the Georgia plant.
The startup said it has received a total of 98,000 pre-orders from the United States and Canada for the R1T pickup and R1S SUV. The company also has the initial order for 100,000 EDV electric delivery vans from Amazon, which received the first batch of the vehicles last month.
Speaking of the R1T and R1S, Rivian CEO RJ Scaringe said during the Q2 conference call the R1 series is not likely to benefit from tax incentives in the new Inflation Reduction Act bill passed by the US Senate. However, he noted that Rivian could qualify for subsidies of up to $40,000 per vehicle for large electric commercial vans similar to the ones it is building for Amazon.
Furthermore, the company’s future R2 line of consumer vehicles, due out in 2025, should also qualify for tax credits because they will have a domestic battery supply chain.
Rivian maintains it production forecast of 25,000 vehicles for this year. In Q2 2022, the EV maker built 4,401 vehicles and delivered 4,467—mostly R1T electric pickups. Since the start of production at the plant in Normal, Illinois, Rivian built approximately 8,000 vehicles (R1T, R1S and EDV combined).