Upstart electric vehicle maker Rivian posts third-quarter loss of $ 1.23 billion :: WRAL.com

By the associated press

DETROIT – Electric vehicle newcomer Rivian Automotive posted a net loss of $ 1.23 billion in the third quarter due to costs related to starting production of its pickup truck.

The company said in its first public earnings report since its initial stock offering that it lost $ 12.21 per share for the quarter. Revenue was $ 1 million from deliveries of 11 pickup trucks.

The loss came about a month after the company’s initial public offering of $ 13.7 billion in November.

Rivian said Thursday that net orders for its R1T electric pickup rose to 71,000 on Wednesday.

The company’s shares fell more than 10% to $ 97.94 after business hours, after falling 5.3% during business hours.

The company also said it lost $ 2.23 billion for the first nine months of the year.

Rivian blamed the losses primarily on labor and overhead costs as it ramps up large-scale production at its Normal, Illinois plant.

“In the near term, we expect this dynamic – vehicle production significantly below our manufacturing capacity – to continue to negatively impact gross margin as we increase production of the R1T, R1S (SUV). and EDV (commercial van), “Rivian said in a statement.

The company also confirmed that it will build a second US plant east of Atlanta that can build up to 400,000 vehicles per year. Production is expected to start in 2024 and the plant could eventually employ more than 7,500 people.

After the takeover bid, Rivian was valued at more than General Motors or Ford.