Rivian will delay its next-generation range of ‘R2’ vehicles until 2026, a year later than previously planned.
The electric car manufacturer made the announcement during the release of its third-quarter results. In the July-September period, Rivian delivered some 7,363 vehicles, an increase from the 4,467 vehicles that it delivered in the previous quarter. The EV maker produced approximately 14,000 vehicles in the first nine months of 2022 and confirmed that it is adding a second shift to its plant in Normal, Illinois.
Rivian’s quarterly revenue fell slightly short of analyst expectations at $536 million while its quarterly net loss increased from $1.23 billion in Q3 last year to $1.72 billion this year. However, capital expenses fell dramatically from $467 million in Q3 2021 to $298 million last quarter, in part because the company is delaying some spending until 2023 while continuing to conserve cash.
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Rivian ended the quarter with $13.8 billion in cash, less than the $14.9 billion it had at the end of the second quarter. In an SEC filing, Rivian said it is “confident in our ability to fund operations with cash on hand through 2025.”
While the company has vast reserves of cash, CFRA Research analyst Garrett Nelson told Reuters that Rivian still has a long way to go before it can become profitable.
“While we think Rivian’s balance sheet is in better shape than most other upstart EV manufacturers from a liquidity standpoint, the company is far from reaching the scale needed to drive down its unit costs and move closer to profitability.”
Details about Rivian’s planned R2 platform are limited but it is designed for smaller and more affordable vehicles than the current R1T and R1S. It will underpin both pickup trucks and SUVs which will be manufactured at the company’s planned $5 billion factory in Georgia.
