NORMAL, Ill. (WMBD) — Rivian has now gone public, but the company’s IPO filings show it lost almost $1 billion in 2020.
In Normal, production of Rivian’s pickup trucks started in September, and the company plans on commercializing SUVs and electric vehicles in December.
With 48,390 pre-orders of its R1T pickups and R1S sports utility vehicles, U.S. and Canadian buyers made $1,000 fully refundable deposits, according to a report from the U.S. Securities and Exchange Commission (SEC)
SEC representatives said Rivian’s vehicles range from $65,000 to $68,000.
With all the money depleted in 2020, what does this mean for Rivian?
Savant Wealth Management Financial Advisor, Daryl Dagit, said the loss of $1 billion so early in the production stages is normal.
“When a new company like this starts out, that is normal, that they will burn through some cash,” said Dagit. “If you compare it to TESLA, TESLA went public in 2010, and it wasn’t until the first quarter of 2020 that they actually showed a profit.”
Dagit said it will take a few years for Rivian to see a profit, but company leaders still plan on producing 150,000 vehicles every year, and hope to expand to 200,000 by 2023.