November 10, 2022
🇺🇸 It's Thursday. Climate Deals is off tomorrow for Veterans Day, but we wanted to take a moment to thank all those who have served our country.
1 big thing: Rivian gears up for EOY production sprint
Rivian needs to manufacture roughly 850 vehicles per week through the end of the year to hit its goal of producing 25,000 vehicles in 2022, Megan reports.
Why it matters: It hasn't yet hit that number even with the introduction of a second shift at its manufacturing plant in Normal, Illinois.
Driving the news: On its earnings call Wednesday afternoon, Rivian CEO RJ Scaringe and CFO Claire Rauh McDonough reaffirmed the company's commitment to producing 25,000 vehicles this year after producing 7,363 in the third quarter. It has produced 14,317 vehicles year-to-date.
- Scaringe told investors Wednesday that the supply chain constraints were hampering production and caused five days of full production shutdowns at the plant due to lack of key components needed to produce the vehicles.
Meanwhile, the company reaffirmed its expected losses for the year to clock in around $5.4 billion.
- It has $13.8 billion cash on hand, enough to fund the company through 2025 based on current plans.
- The company pushed the planned rollout of the R2 vehicle to 2026.
- It is also pushing out some discretionary capital expenditures to 2023 to meet those targets, the company said.
- Rivian's net loss for the third quarter was roughly $1.72 billion, up from $1.23 billion the prior year.
- Scaringe also addressed the recall efforts, telling investors that the company had serviced roughly 83% of affected vehicles to date through its mobile and traditional service centers. He did not comment on the cost of the recall to the company.
The intrigue: Scaringe said the company may need to raise outside capital to build out battery cells in-house as part of its R2 production goals.