Rivian maintains 2023 production target as quarterly loss declines from $1.59B to $1.35B

Rivian maintains 2023 production target as quarterly loss declines from $1.59B to $1.35B

Rivian Automotive Incorporated, the California-based electric vehicle (EV) manufacturer, has maintained its output target for the year of 2023 even as the company managed to trim down its quarterly loss.

Maintaining its production guidance, the EV manufacturer announced that it aims to produce 50,000 EVs in 2023. In the first quarter (Q1) of this year, the company produced 9,395 units of the R1T pickup, R1S SUV, and EDV commercial vans combined. A total of 7,946 units were successfully delivered to customers.

Rivian maintained its production guidance for the current year after posting its Q1 financial results, and the figures and statements from company executives provided a ray of hope for the business.

The company’s first-quarter total revenues of $661 million is better than Wall Street analysts’ expectations. However, the company continues to suffer losses. For the Q1 period, it posted a net loss of $1.35 billion. While it is a considerable loss, the company sees a ray of hope as it is down from $1.59 billion in the corresponding quarter of 2022. The company ended the Q1 period with $11.78 billion in cash, cash equivalents & restricted cash.

The aforementioned 50,000-unit production target or guidance stands as the manufacturer is implementing factory upgrades to boost output and decrease costs.

RJ Scaringe, chief executive officer (CEO) of Rivian, stressed that the company has implemented a number of factory upgrades that will help it both in increasing output and reducing costs in the coming months. In the Q1 of this year, the company temporarily stopped van production to introduce its in-house built Enduro electric motor (e-motor) and an iron-based battery pack to the van line.

Speaking on the topic, CEO Scaringe said, “Production in the first quarter was in-line with our expectations and, as a result, we are re-affirming our production outlook for the year of 50,000 total units. Enduro's providing cost improvements that will result in a significant reduction in our bill of materials.”

Even as the company isn’t profitable yet, it is trying various ways to turn profitable, especially by solving production bottlenecks and trimming down costs. One of those ways is the use of its in-house Enduro e-motor – the new drive unit which is currently being fitted to EDV vans and will soon find its way into the R1T and R1S EVs.

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