I don’t think that includes things like the Amazon delivery vans that Rivian produces. Since they aren’t really sold in the same way.
I think that has been a big part of their revenue/investment so far.
From mid 2023:
On Tuesday evening, the company issued its second-quarter earnings report, which showed that gross loss per unit delivered between April 1 and June 30 came out to $32,595. That’s an improvement over the first quarter’s loss of $67,329 per delivered vehicle, and a huge gain over the same period a year ago, where per-unit losses were as high as $157,600.
Competitors in the EV space have been slashing prices this summer in an ongoing price war, but Rivian CEO RJ Scaringe said on the company’s earnings call Tuesday that Rivian wouldn’t be following suit, citing “continued strong demand.”
In fact, Rivian has increased its total production guidance for 2023 to 52,000 vehicles from 50,000.3 Last month, Rivian shares surged after beating out analyst expectations for second-quarter delivery numbers. In April, CFO Claire McDonough said the company would turn a profit in the final quarter of 2024.
For comparison, gross profit per delivered unit for the second quarter of 2023 sits at around $9,700 for Tesla Inc. (TSLA), a more mature EV company.5 For fellow EV up-and-comer Lucid Group Inc. (LCID), gross losses per unit came out to nearly $138,900 over the same period.
It would make sense if at least the vans would make some profit, otherwise it looks like madness (kinda still does to me) to spend this much money on getting into an industry that is actually imo not that attractive.
Even with the switch from combustion to EV, car manufacturing is still a capital intensive and low margin business. And they don’t seem to go for the potential jackpot that is autonomous driving
I don’t think that includes things like the Amazon delivery vans that Rivian produces. Since they aren’t really sold in the same way.
I think that has been a big part of their revenue/investment so far.
From mid 2023:
— https://www.investopedia.com/rivian-reduces-per-unit-losses-on-the-road-to-profitability-7574456
Thanks for digging this up.
It would make sense if at least the vans would make some profit, otherwise it looks like madness (kinda still does to me) to spend this much money on getting into an industry that is actually imo not that attractive.
Even with the switch from combustion to EV, car manufacturing is still a capital intensive and low margin business. And they don’t seem to go for the potential jackpot that is autonomous driving