Tesla rival Rivian posts losses of $1.7b, with worse to come
Electric carmaker Rivian is reporting more trouble – this time it's the loss of $1.7 billion in Q3 alone, although the biz said it has enough cash on hand for three more years of business., Rivian said its losses primarily stemmed from material costs increasing due to inflation, the termination of some expected purchase agreements and labor and losses from increases in on-hand inventory and subsequent depreciation.
Rivian, which appeared in 2009 as a Tesla competitor, has had nothing but problems – like the fact that it only began delivering vehicles late last year, and has already had toThe recall, which occurred in October and therefore wasn't included in Q3's numbers, is sure to make Q4 even rougher for Rivian, though"worse" is a matter of perspective.
In sum, Rivian experienced an operational loss of $1.7 billion – $500 million deeper than last year's quarter. The biz has burned an extra billion in operations costs versus Q3 last year, and reported negative free cash flow of $1.6 billion, $500 million deeper than the same period in 2021. Bear in mind this is from revenues of $536 million versus a nominal $1m in Q3 2021.
The company hopes its smaller form factor, cheaper line of cars – originally slated to come out in 2025 – will be able to capitalize on upcoming environmental legislation including the Inflation Reduction Act, which includesThe one bright spot for Rivian came in the form of the 1,000 electric delivery vans it has shipped to Amazon which are now making deliveries
Belgique Dernières Nouvelles, Belgique Actualités
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