Amazon has ordered 100,000 supply vans, however Rivian has been reluctant to say what number of it has shipped. On Wednesday, it stated solely that it was “ramping production and deliveries.” On the decision with analysts, Mr. Scaringe stated he anticipated the vans to make up roughly a 3rd of the 25,000 autos within the 2022 production forecast.
In some ways, Rivian epitomizes the sharp shift to bearishness within the inventory market this yr.
In November, buyers piled into its preliminary public providing, wherein the corporate raised $13.5 billion, and its shares then soared, briefly giving Rivian a inventory market worth that was almost as massive as these of Ford Motor and General Motors mixed.
But the inventory plunged this yr after the corporate reduce its production targets. The 80 p.c decline in Rivian’s shares is much steeper than a 31 p.c drop in Tesla’s inventory over the identical interval and a 38 p.c drop for Ford, which is introducing its personal electrical truck.
Rivian makes autos in Normal, Ill., and plans one other manufacturing unit in Georgia. Building and operating meeting strains requires monumental quantities of money, which is why new automobile corporations can run into dire monetary straits if production lags and gross sales fall quick. Even Tesla, which sells extra electrical vehicles than another firm, generally discovered itself operating low on funds.
In the primary quarter, Rivian used up $1.45 billion in money operating its enterprise and investing in new services and tools, way more than the $800 million it consumed within the first quarter of 2021. The firm had $16.4 billion in money on its steadiness sheet on the finish of the primary quarter, down from $18.1 billion on the finish of final yr.
The decline in Rivian inventory slashed the worth of the stakes held by its largest shareholders. Amazon’s 18 p.c stake is price $3.2 billion, down from $16.8 billion at the beginning of the yr. Ford, one other early investor, bought a few of its shares on Monday, and its remaining stake is price $1.9 billion. It would have been price $9.7 billion on the finish of final yr.
Rivian stated it took greater than 10,000 orders for its truck and its S.U.V. after it raised costs in March. Those orders had a median worth of over $93,000, the corporate added.
But as a result of Rivian’s autos promote for comparatively excessive costs, analysts questioned how a lot demand there is likely to be if inflation continued to eat away at households’ spending energy. “It remains to be seen how much appetite consumers have for a price tag of a Rivian,” Mr. Nelson stated.