$ 82 million negative gross margin, production updates, new plant location

Rivian Automotive (NASDAQ: RIVN) released its results for the third quarter of 2021. The electric automaker reported a reasonable quarter, completing its first production units and completing deliveries shortly thereafter. In addition, Rivian announced a profit of $ 1 million from the first customer deliveries of the R1T and also detailed several updates on the company’s outlook for the future, including plans to build its next plant near. of Atlanta, Georgia. However, the company reported negative gross profit of $ 82 million.

“Fall 2021 has been filled with milestones,” the company wrote in its Q3 Shareholder Deck. “We delivered our first consumer vehicles, the R1T pickup truck and the R1S sport utility vehicle (“ SUV ”), in September and December, respectively, and completed the certification process for the sale of our electric delivery van (“ EDV “). We raised $ 13.7 billion in gross revenue with our Initial Public Offering (“IPO”) in November, opened up new avenues to connect and engage with our customers and stay focused on our mission: to keep the world adventurous for the better. always. “

Rivian said it generated total third quarter revenue of $ 1 million from initial deliveries of the R1T pickup. However, he also reported negative gross profit of $ 82 million, which relates “mainly to significant labor and overhead costs for the large normal factory.” Operating expenses for the third quarter reached $ 694 million, an increase of 141% from the same period a year earlier. Rivian also said it suffered an operating loss in the third quarter, totaling $ 776 million.

The company’s third-quarter net loss was $ 1.233 billion, compared to a loss of $ 288 million last year in the third quarter. The increase in losses, compared to the quarter ended September 30, 2020, is mainly due to the higher operating losses described above and a net loss of $ 458 million on the senior convertible promissory notes unsecured issued. “

The past few months have been filled with milestones for Rivian’s business model. “In September, we delivered our first R1T. It was a moment of emotion for our team who devoted their energy and soul to bringing this vehicle to life. As of December 15, 2021, we have produced 652 R1 vehicles and delivered 386 of them, including the production and sale of our first two R1S vehicles earlier this week, ”the company said. It has also accumulated 71,000 reservations for its vehicles.

Finally, Rivian will build its second US production plant in Georgia after several months of speculation. “To build our recently announced second nationwide manufacturing facility near Atlanta, Georgia (500,000 annual production capacity targeted with eventual production of collocated cells),” the company wrote in its Shareholder Deck. CEO RJ Scaringe said during the earnings call that Rivian will innovate on the Georgia plant in the summer of 2022.

Disclosure: Joey Klender is not a shareholder of RIVN.

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Rivian Reports Third Quarter Results: $ 82 Million Negative Gross Margin, Production Updates, New Plant Location