Irvine’s Rivian to build $5bn plant in Georgia, posts $1.2bn in quarterly loss


Irvine’s Rivian to build $5bn plant in Georgia, posts $1.2bn in quarterly loss

Rivian Automotive Inc., the Irvine, California-headquartered e-vehicle startup which had shelved the world’s largest-ever IPO last month, had reported a third-quarter net loss of $1.2 billion on Thursday, sending its shares as much as 9.0 per cent lower in after-market trading, however, the Ford-backed EV start-up told that it had been brewing off an option to build its second US assembling plant in Georgia, suggesting a sagacious move as a planned $5 billion Georgia plant in effect would help Rivian reach its quarterly delivery targets.

Nonetheless, after reporting a net loss of a whopping $1.2 billion at its first quarterly result after going public, Rivian shares tumbled just a notch shy of 9 per cent to $99.30 apiece in after-market trading. Rivian had wrapped up the day 5.33 per cent lower to $108.87 apiece.

In point of fact, a mass-scale sell-off wave in Rivian came against the backdrop of an after-market remark from the Irvine-based automaker that said the company was expecting its outputs to stand about a few hundred vehicles behind a 2021 target of 1,200 deliveries, while Rivian’s pre-orders also had disappointed the Wall Street.

Rivian posts $1.2 billion in Q3, 2021 losses

According to Rivian Automotive Inc quarterly earnings’ report for Q3, 2021, the Amazon-backed e-vehicle manufacturer had posted a net loss of $1.2 billion or $12.21 per share, while on an adjusted basis, Rivian’s operating loss stood at $776 million.

Besides, Rivian said at its quarterly earnings’ report that the automaker’s slated Georgia plant would employ more than 7,500 workers and manufacture about 400,000 vehicles per year. In tandem, as of December 15, the carmaker had 71,000 R1T and R1S pre-orders in the United States and Canada, up about 55,400 logged at the end of October.

Rivian has had a contract to deliver 100,000 Amazon electric pickup vans by 2025.