The founder and CEO of electric vehicle company Rivian Automotive Inc (NASDAQ:RIVN) issued a shareholder letter Monday to share where the company has been and where it is headed. Here are the key takeaways from the letter.
What Happened: In a letter to shareholders, Rivian CEO and founder RJ Scaringe highlighted the launch of the R1T, R1S and EDV over the last year.
“These vehicles and services are critical for establishing our consumer and commercial business,” Scaringe said.
The CEO noted that launching multiple vehicles on two platforms has led to the need of ramping up the supply chain.
The company’s Normal, Illinois plant has a current annual capacity of 150,000 units. Supply chain issues have led to not being able to hit full capacity, something the company is working through to “full utilize this capacity.”
The launch of products by Rivian along with a large order for 100,000 units from Amazon.com, Inc. (NASDAQ:AMZN) were important for the company, Scaringe said.
Related Link: Rivian Q1 Earnings Highlights: 2,553 Vehicles Produced, 1,227 Delivered, Supply Chain Constraints And More
What’s Next: Scaringe highlighted the launch of the R2 vehicle platform, which will be the successor of R1T and R1S.
“We have focused our roadmap to ensure that the $17 billion of cash we had on our balance sheet as of March 31, 2022, can support the 2025 launch and ramp of our R2 vehicle platform,” Scaringe said.
Scaringe highlighted the impact traditional automobiles have had on the planet and how companies are now working to make the planet better for our kids and their kids.
“The actions we take over the next few decades will determine the state of our planet for many generations to come.”
While a shift to carbon-neutral is underway, Scaringe said we are still early in the “massive transformation.”
“I started Rivian to help shape and accelerate the formation of this new value chain.”
Rivian is focusing on ramping up production and increasing its vertical integration for key aspects of the production process. The company has also built up its direct-to-customer sales approach.
The company has a backlog of more than 90,000 R1 preorders according to the CEO.
“The journey ahead won’t be easy and we must remain hyper-focused on our execution of our ramp, path to positive margins and development of our future technologies and R2 product line.”
RIVN Price Action: Rivian shares are down 4.01% to $28.98 Monday afternoon. Shares have traded between $19.25 and $179.47 since going public in November.
Photo: Jarlat Maletych via Shutterstock
