$Rivian Automotive, Inc.(RIVN)$ Rivian reported $39,000 loss per vehicle. The breakdown was:
~$15,000 in depreciation. I don't believe this is a cash loss. This absolutely affects lease prices, but I'm not sure in what meaningful way it is tantamount to a real loss.
~$1700 in stock option loss. This is a loss for shareholders but it's a small percent of total loss per vehicle.
~$9,500 in loss prior to cost improvement via new suppliers and more cost efficient equipment. This should be a cost reduction Q2 onward. This should also reduce depreciation (according to Rivian).
This is the breakdown. Rivian is making the case the real loss Q2 moving forward should be ~$13k. I don't fully understand the depreciation expense. If depreciation is not a real loss, I don't understand why the cash burn is so high. Where are the exorbitant expenses coming from? Perhaps someone more informed can offer an explanation. Q2 should see less cash burn. If the cash burn doesn't come down substantially in Q2, this company will be in a lot of trouble without a partner.
Other information to consider. The company has $6 billion in cash, but also ~$4 billion in debt.
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- EmilyMark·05-10While it doesn't require immediate cash outflow, it affects profitability.LikeReport