Rivian, the EV manufacturer, reported better then expected results but deeper losses are in line for the rest of the year
During the second quarter of 2022, Rivian produced 4,401 vehicles and delivered 4,467 vehicles and generated $364 million of revenue, versus $337.5 million expected, primarily driven by the vehicles delivered in the quarter.
The company generated negative gross profit of $(704) million in the second quarter of 2022, as it keeps producing vehicles at low volumes on production lines designed for higher volumes.
This dynamic will continue in the near term, but the company expects to improve on a per vehicle basis as production volumes ramp up faster than future labor and overhead cost increases.
Expenses negatively impacted gross profit in the second quarter of 2022 by $301 million, additionally, it expects these items to continue to negatively impact operating results in near-term periods.
Throughout the quarter, the cost of materials was impacted by inflationary pressures, which will continue to be an impact for the near future.
The company said that it has about 98k net preorders for its R1-series truck and SUV as of end of Q2 (in May it was 90k) and expects to make about 25k vehicles this year, in line with guidance provided in March.
However, the company said adjusted loss before income, taxes, depreciation, and amortization will come in at $5.4 billion which is higher than $4.75 billion expected in May.
Total operating expenses in the second quarter of 2022 grew to $1,004 million, as compared to $580 million in the same period last year. In the second quarter of 2022, Rivian recognized a non-cash, stock-based compensation expense of $229 million and depreciation and amortization expense of $34 million in operating expenses.
The company reported a net loss for the second quarter of 2022 $1,712 million as compared to $580 million for the same period last year. The increased losses, as compared to the second quarter of 2021, were due primarily to the higher operating losses discussed above.
Net cash used in operating activities for the second quarter of 2022 was $(1,204) million as compared to $(489) million for the same period last year, as the company continue to ramp production at Normal Factory, scale corporate and commercial operations, and increase R&D efforts.