Rivian affirms 50K production goal this year after $1.35 billion Q1 net loss

Rivian Automotive expects to meet its 50,000 production goal this year as it implements factory upgrades that will both increase output and reduce costs in the coming months, the company said after posting a $1.35 billion first-quarter net loss.The EV startup assembled just 9,395 vehicles in the first quarter, including the R1T pickup, R1S crossover and EDV commercial vans.Rivian paused van output in the first quarter to introduce its in-house Enduro motor and an iron-based battery pack to the van line."Production in the first quarter was in line with our expectations and, as a result, we are reaffirming our production outlook for the year of 50,000 total units," CEO RJ Scaringe said on the first-quarter earnings call Tuesday.The industry newcomer posted revenue of $661 million for the quarter, which beat Wall Street estimates. Rivian's share price rose about 5 percent in after-hours trading.While Rivian continues to burn through cash, the company suggested it's starting to turn the corner in terms of solving production bottlenecks and cutting costs. A big first step comes from using its own Enduro motor, first in EDV vans and later this quarter in the R1T and R1S."Enduro's providing cost improvements that will result in a significant reduction in our bill of materials," Scaringe said.The costs of materials for EDV vans fell by 25 percent through the introduction of the Enduro electric motor and lithium-iron-phosphate battery packs. Previously, Rivian was using an outsourced motor and more expensive nickel-based battery cells in the vans.While its consumer vehicles won't receive the LFP packs immediately, about half of all R1 vehicles are expected to use the Enduro motor later this year, Scaringe said. The third-party motors will continue to be used on the other half.

Rivian affirms 50K production goal this year after $1.35 billion Q1 net loss

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