Rivian lost $6.8 billion last year as production slumped

The electric truck maker said it plans to double production in 2023 as parts supply becomes more reliable.

Rivian, a maker of electric trucks, said on Tuesday it lost $1.7 billion in the last three months of last year due to production difficulties.< /p>

This loss brings the company's total losses for 2022 to $6.8 billion and highlights the problems that once promising start-ups are gaining ground on Tesla, which dominates the electric vehicle sector. Last week, another young automaker, Lucid Motors, said it lost $2.6 billion in 2022.

Rivian said chain issues are The supplies that plagued it last year would continue this year, but are becoming easier to anticipate. The company said it plans to produce 50,000 vehicles this year, about twice as many as in 2022.

During a conference call, the director Rivian General R.J. Scaringe said the company is working to cut costs, especially now that Tesla has cut prices for its cars by up to 20%. Reducing costs "is our biggest challenge today," Scaringe said.

He added that demand remained "robust," noting that the company had an order backlog that was expected to last through 2024.

Rivian had revenue of $663 million and delivered 8,054 vehicles in the fourth quarter of 2022. Full-year revenue of $1.7 billion and delivery of 20,332 vehicles in 2022. It produced 24,337 vehicles last year, just short of its reduced target of 25,000.

The company said it had $11.6 billion in cash and cash equivalents at the end of December, compared to $18.1 billion in dollars a year earlier. pickup truck, a sport utility vehicle and a delivery van. The company has attracted several deep-pocketed investors, including Amazon, which placed a large order for the automaker's minivans. Ford Motor also invested in the company but ultimately decided not to work with Rivian and sold most of its shares.

The company's inability to rapidly ramp up production at its Normal, Ill., plant has limited sales and its stock price has plunged. On Tuesday, it was trading around $19, down from around $47 a year earlier. The company's stock price was about 8% lower in extended trading following the release of its earnings report.

Rivian said that it planned to report a loss of $4.3 billion in 2023 before taking into account interest, taxes and other expenses.