Rivian, a fledgling maker of electric vehicles, said Thursday it lost $1.7 billion in the second quarter and estimated it would make just over 26,000 vehicles this year, about 1,000 more than it previously forecast.
The company said it was still having difficulty getting enough components to ramp up production to higher levels.
“The supply chain remains the limiting factor in our production,” the company said in a statement. “However, thanks to close collaboration with our suppliers, we are making progress.” Rivian also said that he hoped to add a second production shift towards the end of the third quarter.
Rivian said it generated $364 million in revenue in the three months from April to June, up from $95 million in the first three months of the year. He also said that he had customer reservations for 98,000 vehicles at the end of June.
Rivian said last month that it produced 4,401 vehicles in the second quarter and delivered 4,467 to customers.
Rivian was once seen as “the next Tesla,” an electric vehicle maker poised to grow rapidly and disrupt century-old auto industry giants like Ford Motor, General Motors and Volkswagen. He planned to make an electric pickup truck and a sport utility vehicle, models that would set him apart from the minimalist electric cars that Tesla produces.
The company raised billions of dollars thanks to the backing of investors such as Ford and Amazon, who announced their intention to buy 100,000 electric delivery vans from Rivian.
Rivian’s initial public offering was the largest of 2021, and within days its share price skyrocketed. For a time, the company’s market value was greater than that of Ford and General Motors combined.
But difficulty obtaining critical computer chips and manufacturing problems at its Normal, Ill., plant kept production well below what the company had expected. It has also had trouble building delivery vans for Amazon. Rivian’s share price has plummeted and investors remain concerned about the company’s prospects.
Now, as production ramps up, it faces a tougher competitive landscape. Ford has started making an electric pickup truck, the F-150 Lightning, that is likely to overtake Rivian in sales by the end of the year. Ford, Volkswagen, Hyundai and several others have ramped up sales of electric SUVs, and GM has said it will start selling an electric version of its Chevrolet Silverado pickup truck and a pair of electric SUVs next year.
Buyers of some of Rivian’s vehicles are also expected to soon lose access to a federal tax credit under the climate bill the House is expected to pass on Friday; the Senate approved it on Sunday. Under the bill, purchases of trucks, SUVs, and vans that sell for more than $80,000 will not qualify for tax credits. The credits will also not be available to individuals or couples earning more than $150,000 or $300,000 a year.
Rivian said last month that it was laying off about 6 percent of its 11,500 employees. “To fully realize our potential, our strategy must support our sustainable growth as we move toward profitability,” company CEO RJ Scaringe said in a letter to employees. “We need to be able to continue to grow and scale without additional financing in this macro environment.”