As electric vehicle maker Rivian reported its Q1 financial highlights, Ford revealed it had sold 8 million shares of its stake in the company, leaving the automaker with 10.5 percent of Rivian stock as the fourth-largest shareholder, according to Reuters.
Rivian says it produced 2,553 vehicles during the quarter, delivering 1,227 of them and generating $95 million in revenue. It generated a negative gross profit of $(502) million.
The company summarized its position in a letter to shareholders.
"As we produce vehicles at low volumes on production lines designed for higher volumes, we have and will continue to experience negative gross profit related to significant labor and overhead costs. This dynamic will continue in the near term, but we expect it will improve on a per vehicle basis as production volumes ramp up faster than future labor and overhead cost increases.
"Additionally, we recorded a lower of cost or net realizable value (“LCNRV”) adjustment to reflect the amount we anticipate receiving upon vehicle sale (after considering future costs necessary to ready the inventory for sale) and losses on firm purchase commitments. These expenses negatively impacted gross profit in the first quarter of 2022 by $188 million; additionally, we expect these items to continue to negatively impact operating results in near-term periods. We also experienced increased logistics costs due to expedited freight associated with supply chain challenges."
Sources: Rivian, Reuters
