Rivian confirms new $5 billion plant, rising EV preorders as supply chain snags pressure production

Rivian confirms new $5 billion plant, rising EV preorders as supply chain snags pressure production

RJ Scaringe and workforce on opening day at Rivian’s manufacturing campus in Normal, IL.

Source: Rivian

Rivian Automotive confirmed plans Thursday to construct a new $5 billion car meeting plant in Georgia, as the corporate begins production of a second electrical car at its present facility in Illinois.

Both are notable milestones for Rivian, which additionally reported its first quarterly outcomes as a public firm after market shut. However, whereas the corporate readies to ramp output, supply chain snags are pressuring present production ranges.

Rivian mentioned it expects to fall “a few hundred vehicles short” of its 2021 production goal of 1,200 automobiles. The firm’s inventory closed Thursday 5% down and slipped greater than 3% throughout after-hours buying and selling.

“We have been met with one of the most complex supply chain environments the automotive industry has ever experienced,” the corporate mentioned in its shareholder letter. “We are encouraged that the issues we are experiencing, while certainly challenging, are not systemic in nature.”

Rivian mentioned whole reservations for its electrical R1T pickup and R1S SUV elevated to 71,000 as of Dec. 15, up 28% in contrast with the newest tally of 55,400 automobiles in November.

The firm mentioned it has produced 652 R1T and R1S automobiles and delivered 386 of these, together with the production and sale of the primary two R1S SUVs earlier this week.

Q3 outcomes

The firm’s quarterly outcomes fell consistent with Wall Street projections and with estimates the corporate beforehand launched as a part of its latest IPO.

For the third quarter, Rivian reported an operational lack of $776 million and a web lack of $1.23 billion. The firm had beforehand predicted an operational loss between $745 million and $795 million and a web loss between $1.21 billion and $1.28 billion.

The firm posted a loss per share of $12.21 on income of about $1 million.

Wall Street analysts anticipated the corporate to report a $5.52 earnings per share loss on income of $1 million, in response to a handful of estimates compiled by Refinitiv. CNBC doesn’t examine reported EPS to Wall Street analysts for a corporation’s first report since going public due to uncertainty round share counts.

New plant

The new battery and meeting plant introduced Thursday will probably be east of Atlanta and is predicted to facilitate production of as much as 400,000 automobiles per 12 months, Rivian mentioned. Construction on the power is predicted to start in summer season 2022, and the beginning of production is slated for 2024. 

Rivian, whose stakeholders embrace Amazon and Ford Motor, was the primary automaker to go to market with an all-electric pickup truck known as the R1T. It went public by a blockbuster IPO in November.

Wall Street analysts have set a excessive bar for Rivian, evaluating CEO RJ Scaringe to Superman and saying the corporate’s “the one” able to difficult EV chief Tesla.

Rivian remains to be a progress story, although. It expects capital expenditures of about $8 billion by 2023, with some analysts such as BofA Securities’ John Murphy forecasting Rivian will not flip an working revenue till at the least 2025.

— CNBC’s Michael Bloom contributed to this report.

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