business

Rivian predicts added loss of USD 700 Mn for 2022 amid rising inflation

Rivian predicts added loss of USD 700 Mn for 2022 amid rising inflation

Rivian Automotive Inc. is likely to register a whopping loss of USD 5.45 billion in 2022, as per the latest Q2 earnings reports published by the company.

Although the electric vehicle automaker remains hopeful of achieving the goal of delivering 25,000 vehicles by the end of this year, it is predicted to record a loss of an additional USD 700 million, which is significantly higher than the company’s estimations from three months ago.

Notably, in the second quarter, the corporation delivered 4,467 vehicles and subsequently accrued losses of USD 1.71 billion. Among these deliveries, the company’s line of SUVs, trucks, and delivery vans that it builds for Amazon, enjoyed the most sales.

On a positive note, the automotive giant managed to swerve beyond the expectations of trade analysts, bringing revenue of USD 364 million in Q2. This growth can mainly be attributed to a surge in the demand for the EV firm’s range of SUVs and trucks.

Over the last several months, the firm has moved away from its recent 52-week slump of USD 19.25 per share, which occurred in May following Ford Motor Company’s departure from being a key stakeholder in the company. Currently, the company stands tall at a regular trading mark of USD 38.95 per share, witnessing a 4% rise, as per statistics.

Company executives have reportedly blamed factors such as rising interest rates, supply chain hindrances, and rising costs of raw materials for its poor performance over the quarter. In July, the EV automaker held out a directive to fire nearly 6% of its overall workforce, as a part of the restructuring module, and the challenging economic landscape.

It is worth noting that this layoff did not affect employees across the manufacturing unit of the firm’s plant in Normal, Illinois.

In other news, Harald Kroger who previously chaired the executive position in multinational corporations such as Robert Bosch GmbH and Mercedes-Benz Group AG is now a welcome addition to the board of Rivian Automotive Inc.

Source Credits –

https://techcrunch.com/2022/08/11/rivian-q2-earnings-2022-rivn-losses-revenue-beat/

About the author

Rashi Thakkar

Rashi Thakkar

Rashi started her journey in content when she was completing her MBA. Since then, she has helped well-known startups and businesses boost their online presence. Currently Rashi pens downs insightful articles for AlpenHornNews and various other websites, covering an array of sectors from finance and business to technology and healthcare.