Rivian has become the talk of the town with its Q3 2023 performance, breaking its own records in vehicle production and deliveries. While these numbers show promise in the electric vehicle (EV) sector, a closer look reveals challenges that can’t be ignored.
Rivian manufactured over 16,000 EVs in Q3 2023
In the third quarter of 2023 alone, Rivian manufactured 16,304 electric vehicles—a staggering 121% increase compared to the same time last year. Notably, the company managed to deliver 15,564 of these vehicles, marking a year-over-year growth of 136%. Sounds impressive, right?
However, financial stability remains a significant roadblock for the EV startup. According to the Wall Street Journal, Rivian has already burned through half of its $18 billion cash reserve. Moreover, the company recorded a loss of about $33,000 per truck sold in the previous quarter. These figures suggest that the company’s rapid expansion is not without its downsides.
Rivian’s portfolio currently includes three major models: the R1T pickup, R1S SUV, and a range of commercial vans primarily aimed at Amazon. While Rivian hasn’t broken down the sales numbers for each of these models, the losses hint at a high production cost, likely cutting into the profitability of each model.
This year, Rivian aims to produce around 52,000 vehicles, according to their latest guidance. Given their Q1-Q3 2023 performance, with more than 39,000 vehicles produced and 36,000 delivered, reaching or even surpassing this target seems plausible.
Yet, questions linger on whether Rivian can sustain its operations financially, especially considering the current cash burn rate. The company will release a comprehensive financial report for Q3 2023 on November 7, which could provide further insights into this situation.
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