Electric truck maker losing $33,000 for every vehicle it sells
The truck can go from zero to 60 miles per hour in 3 seconds, but the luxury features come at a heavy cost.
Automobile manufacturer Rivian, known for producing electric pickup trucks and SUVs, lost $33,000 for every vehicle it sold in the second quarter, even though the vehicles sell for more than $80,000 on average.
The truck can go from zero to 60 miles per hour in 3 seconds, it has high crash-test ratings and a complicated suspension system that allows for a smoother ride.
The luxury features come at a heavy cost for Rivian, forcing the company to lose money on every vehicle sold in the second quarter as the company has spent half of its $18 billion cash stockpile in two years, "The Wall Street Journal" reported Monday.
Rivian sells three models: the R1T pickup truck, the R1S SUV and Amazon's electric delivery van.
The company's share price is down around 70% from its initial public offering price of $78 when it debuted on the market in 2021.
Founder and Chief Executive RJ Scaringe said the billions of dollars that have been spent were necessary to grow the company, and executives say Rivian's goal is to make a gross profit by the end of 2024.
"We’re competing to build something that’s truly better than all the alternatives, and to try to do that on a limited budget would be detrimental to us achieving our mission," Scaringe said.
On top of the expensive sale price, Rivian vehicles can also cost quite a bit to repair. An Ohio man earlier this year said he had to pay more than $42,000 to repair his Rivian truck after a minor fender bender.