In a letter to shareholders, Rivian said that even with supply chain constraints the company believes it will have sufficient parts and materials to produce 25,000 vehicles this year. Without those parts constraints, the company estimated that it would be able to build around 50,000 vehicles, including the R1T pickup, the R1S SUV and commercial vans for Amazon on the RCV platform.
Rivian said as of March 8, it had built 1,410 vehicles this year, and 2,425 since the start of production. It said that during the two weeks prior to March 8 it averaged a weekly production rate that was about twice the exit rate of the fourth quarter of 2021, but it expects supply-chain constraints to continue through 2022.
“As we continue to ramp up our manufacturing facility, manage supply chain challenges, face continued inflationary pressures and minimize price increases to customers in the near term, we expect to recognize negative gross margins throughout 2022,” the company said in the letter to shareholders.
“The 2022 production guidance was disappointing and well short of what they said in their road show, and the fourth-quarter loss was wider than expected,” said Garrett Nelson, analyst at CFRA Research.
Rivian, other startups and legacy automakers such as Ford Motor Co. and General Motors face tough competition from EV market leader Tesla Inc. as they aim to start delivering more electric vehicles in the near future.
CEO RJ Scaringe said in a Thursday conference call with analysts that Rivian expects a “significant” production ramp-up in the second quarter of the EDV-700 van for Amazon.com.
Rivian said it was “exploring ways to further expand” its commercial relationship with Amazon, which owns a 20 percent stake in the startup and has ordered 100,000 vans. Rivian said it will begin producing a second Amazon van this year, the EDV-500, which is shorter and narrower than the EDV-700.
Rivian said it had 83,000 pre-orders for its R1T pickup and R1S SUV as of March 8, up from 71,000 in mid-December.
As of Thursday’s market close, Rivian’s share price had dropped about 77 percent and lost $124.5 billion in market capitalization since hitting its peak after going public in November.
The company ended the quarter with $18.4 billion in cash and equivalents.
