Californian electric vehicle maker, Rivian, has set itself loftier delivery targets for 2023 after releasing its production forecast for the year, confirming its heavy cash reserves can keep its momentum high well into 2025.
All up, Rivian expected to deliver 50,000 vehicles for the year, with company executives expecting this to rise by 4% to 52,000 units in total by the end of 2023.
Revenue figures exceeded that of estimates, totalling $1.12 billion in the second quarter after Rivian delivered 12,640 vehicles between April and June, 2023.
Rivian’s gross margins jumped from negative 81% in the first quarter to negative 37%, with the company posting an adjusted loss of USD $31,595 for every vehicle sold.
While that sounds less than desirable, the amount lost per vehicle has been reduced by more than half, now totalling a loss of USD $31,595 per vehicle sold.
Interestingly, Rivian has made the move to produce its powertrains in-house, rather than lean on third-party suppliers after learning some big lessons throughout the pandemic.
Cash reserves at Rivian shrunk by USD $2 billion in the second quarter of 2023 down to $9.25 billion in total as the company looks to ramp up production of the R1T pick-up and R1S SUV, as well as develop a series of smaller and more affordable mass-market packages.
This next chapter of Rivian’s product lineup is known as the R12 program, which will aim to give the Californian EV maker a more significant market share position.
It also mirrors that of Tesla’s approach of the Model S pioneering the lineup, followed by the more affordable Model 3 and Model Y.
Speaking with Reuters, Rivian’s CEO, RJ Scaringe has said that “the cash balance that we have today takes us through 2025.”
“We will be very thoughtful and intentional on how we secure additional capital to support the growth of the R2 program.”
