Rivian losses surge to $1.7 billion as manufacturing ramps up

Rivian CEO RJ Scaringe said on a call with investors that during “a lot” of the second quarter they were not able to fully utilize their production line.

“We weren’t even able to run a full single shift because of component supply,” Scaringe said.

Rivian expects supply chain shortages to continue to limit its growth, but it’s confident enough in an improved outlook that it said it expects to add a second shift at its Normal, Illinois, manufacturing plant later this year. Scaringe expressed confidence the production rate will continue to grow, as increasing the number of vehicles making it out of the factory doors is critical to achieving profitability.

Rivian, which has heavy backing from Amazon (AMZN), had 98,000 preorders in the US and Canada at the end of June, and it said its rate of preorders has increased this year. The majority of new buyers for its pick-up truck, the R1T, have never owned a pick-up truck before, the automaker said.

The hefty losses are in line with Rivian’s…

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