Rivian lost $1.71 billion and delivered 4,467 vehicles in the second quarter of 2022

Rivian, the bustling electric car company backed by Ford and Amazon, posted a net loss of $1.71 billion in the second quarter of 2022 based on revenue of $364 million. It’s a sign that Rivian’s fledgling electric car business is picking up pace, albeit slowly compared to the previous quarter that Rivian reported. Net loss of 1.59 billion dollars Based on $95 million in revenue. However, the company beat Wall Street expectations for revenue by about $26 million.

The earnings report was also an indication that Rivian still had ways to go before it could deliver on its promise to overturn the auto industry with beautifully designed, zero-emissions, adventurous trucks and SUVs. The automaker said it expects to burn an additional $700 million in cash before the end of the year.

The earnings report comes on the heels of a Positive production update Where Rivian said it manufactured 4,401 vehicles during the three-month period, an increase of 72 percent from the previous quarter, and delivered 4,467 vehicles, an increase of 267 percent. The company did not provide a breakdown between R1T . trucks and his electric delivery truck (EDV) that is created for the Amazon service. (delivery from R1S SUV It has been postponed until later this year.)

The company will still need to produce 18,046 vehicles over the next eight months if it is to meet its target of 25,000 vehicles built this year, or roughly 9,023 vehicles each quarter. This will not be a small task but it certainly falls within the realm of possibility. During the latest earnings call, Rivian said it had more than 90,000 reservations for its R1T and R1S vehicles. Now, the automaker reports that it has increased to about 98,000 reservations.

However, the company had to overcome some harsh conditions to get here. Last month, Rivian layoffs of about 6 percent of its 14,000 employees, or about 800 people, due to the need to cut costs in order to accelerate the development of future versions of its electric trucks and SUVs.

Ahead of the earnings report, Wedbush’s Dan Ives said Rivian is showing some signs of improvement. “Rivian is beginning to find its marine legs,” Ives wrote in a note, adding that the company has the potential “to be one of the pioneers in electric vehicles for the next decade.”

But the recent price hike and news that revised tax credits for electric vehicles will change the landscape for electric car buyers, Rivian has struggled to respond. Under the new climate law introduced by Senate Democrats, the most expensive electric cars (sedans over $55,000 for new cars, vans, and SUVs over $80,000) Will not qualify for a $7,500 tax credit.

Some of the Rivian’s electric truck and SUV configurations will almost certainly be too expensive to qualify for credit, which could lower demand. Rivian too raised prices in both models by 20 percent, sending its stock price down and forcing CEO RJ Scaringe to issue a public apology.

In response, the company sent emails to customers and published a file response support On her website she advises them to sign a “binding contract” before the law goes into effect in order to secure their $7,500 tax credit. But she also admits she can’t “guarantee eligibility” for the incentive.

Rivian reports that it has $15.5 billion in cash on hand. This will be very beneficial for the automaker if it expects larger losses for this year.