Rivian suffers losses but remains in great cash position

Rivian Automotive continues to lose billions after a year of providing ground-breaking R1T electric trucks to consumers. But, analysts say the EV startup has a good chance of surviving where other companies have failed. 

As it transitions from higher-end adventure vehicles to more mainstream models in the middle of the decade, Rivian’s IPO stock offering is providing a significant financial buffer. The California-based automaker has gained substantial industry respect due to the crossovers and EDV vans it recently sent to Amazon. 

Rivian has cut its forecasted production totals to 25,000 after originally planning to make 50,000 vehicles, as a result of supply chain issues. This has led investors, who once elevated Rivians’s valuation above that of GM and Ford, to announce cash burn concerns.

Rivian is not the only U.S.-based EV startup dealing with ongoing supply chain problems and losses, though. The third quarter net loss for Lucid Group was $670 million. Both Lordstown Motors and Faraday Future have struggled to fund their initial productions.

Despite suffering significant losses, Rivian remains in the greatest position in terms of cash, vehicle production, and mainstream expansion plans. In comparison to Tesla, which shares many characteristics with Rivian, both domestic EV companies are well-established, with over a decade of experience and highly inventive products.

The long-term outlook for Rivian is as good as any manufacturer of all-new EVs since it has a more reliable leadership team and a less contentious past. “Because it took Tesla more than ten years to start turning a profit, Rivian has time to establish itself in the market and on Wall Street”, exclaims Karl Brauer, executive analyst at iSeeCars.com.   

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