American EV manufacturer Rivian is currently losing $33,000 per car produced. Yet the brand's CEO sees a bright future. We explain how that works.
Many start-ups encounter a kind of chicken-and-egg problem: before a company is profitable, a certain number of products must be sold. And money is needed to get that production going. It is therefore important to have enough equity.
Rivian is in a similar situation. The company was founded in 2009 and, after years of research, delivered its first electric cars in 2021. The production was paid for with money that Rivian raised by issuing shares. This IPO earned the company $18 billion.
Meanwhile, two years have passed and Rivian is still losing a lot of money on every EV that leaves the factory. In addition, the company has gobbled up about half of the $18 billion. But there is light at the end of the tunnel, CEO RJ Scaringe said in conversation with NCBC. There is indeed an upward trend in Rivian's financial situation.
You can also contact our free newsletter for in-depth stories like this!
The loss per car produced is moving in the right direction. In the third quarter of 2022, Rivian lost more than $139,000 per car sold. A quarter later this had fallen to $124,162, and six months later the amount had almost halved to $67,329. A quarter later, the number halved again to just under $33,000.
These numbers, coupled with increasing production that is also increasingly efficient and cheaper, means that Rivian is expected to become profitable in the foreseeable future.
We will probably see more of Rivian in the Netherlands as soon as the car brand actually becomes profitable. Rivian is currently selling a full-size pickup (Rivian R1T) and an SUV (Rivian R1S). The company also supplies electric vans to Amazon.
This post was last modified on October 5, 2023 2:31 pm
Toyota proves that it does believe in electric cars by enriching the car world with… Read More
table of contents●Released the “LS” facelift and the “RC F” special car●"LS" facelift model and… Read More
table of contents●A "Swift" camouflaged car was seen in Japan, quietly moving in Japan? Is… Read More
Suzuki is a sympathetic brand that never does crazy things. With a new Suzuki Swift… Read More
The Renault Espace (2023) is brand new and has undergone a transformation from MPV to… Read More
This month, China Mitsubishi continues to extend its good "nothing left behind" car purchase discount… Read More