Startup electrical truck producer Rivian continues to see sturdy demand for its inaugural merchandise, with practically 200,000 orders in hand, and an extended option to go to fill them.

Rivian introduced throughout a second quarter earnings name Thursday it had greater than 98,000 orders for its R1T pickup and R1S SUV as of June 30. Amazon, an early investor in Rivian, has ordered 100,000 industrial electrical supply vans.

The California-based firm, which launched manufacturing in downstate Regular in September and has struggled with a slower than anticipated ramp-up, has constructed about 8,000 EVs and reaffirmed a scaled-back manufacturing goal of 25,000 automobiles this yr.

Rivian generated $364 million in revenues and reported a internet lack of $1.7 billion for the quarter. The corporate reported Thursday it had $15 billion in money on the finish of the second quarter.

Along with issues in regards to the manufacturing ramp-up, Rivian is navigating the implications of President Joe Biden’s historic local weather invoice, which handed the Senate on Sunday and is headed for a vote within the Home on Friday. It contains an extension of the $7,500 federal tax credit score for EV purchases, however units a cap that might make vans and SUVs priced over $80,000 ineligible. That will minimize the vast majority of Rivian’s gross sales out of the combo for the tax credit score starting subsequent yr.

The $430 billion Inflation Discount Act focuses on well being care and clear power, with a variety of measures to advertise EV adoption. The invoice extends the $7,500 tax credit score till 2032, provides a $4,000 tax credit score for used EVs and lifts the 200,000 car gross sales cap for producers.

It additionally imposes new restrictions, excluding higher-income consumers and EVs priced above $55,000 for sedans and $80,000 for SUVs and vans, which may influence Rivian and different producers. The invoice additionally contains new home battery sourcing necessities.

“We’re extremely comfortable to see coverage that helps drive extra speedy adoption of electrical automobiles, in addition to vital investments in constructing home battery cell manufacturing,” Rivian CEO and founder R.J. Scaringe mentioned Thursday. “Whereas a lot of our R1 configurations received’t meet the invoice pricing necessities, our (next-generation) R2 product line and related cell roadmaps are being developed to permit our prospects to seize the worth of those incentives. ”

The beginning worth for the R1T truck is $67,500, whereas the R1S SUV lists for $72,500. However after add-ons and choices, most Rivian prospects spend greater than $80,000 on their EVs, the corporate mentioned.

On Wednesday, Rivian despatched present prospects who’ve reserved an EV a possible workaround to qualify for the complete $7,500 tax credit score earlier than the invoice turns into legislation Jan. 1. Rivian mentioned consumers can signal a “written binding contract” for his or her R1T or R1S buy, making $100 of their current $1,000 deposit non-refundable, however excluding them from the worth and revenue restrictions, whatever the supply date.

Rivian cautioned that the ultimate invoice phrases weren’t sure and there was no assure the IRS would approve the tax credit score, however provided the choice “as a option to do what we are able to to extend the chance of receiving the $7,500.”

In the course of the convention name, Scaringe reiterated that ramping up manufacturing in Regular stays the “key focus” for Rivian, however the firm has elevated the significance of cost-cutting as properly.

Final month, Scaringe was in Chicago to unveil the primary of 100,000 electrical supply vans to be put in service by Amazon. One week later, Rivian introduced it had laid off 6% of its complete workforce, or about 840 nonmanufacturing workers, together with about 50 at its Regular meeting plant. Scaringe cited rising inflation and tightening capital markets for the cost-cutting transfer.

Rivian had about 6,000 workers in Regular and about 14,000 throughout the corporate earlier than implementing the restructuring plan.

The Regular plant has an annual manufacturing capability of 150,000 automobiles and was projected to construct 50,000 in 2022 earlier than world provide chain points, together with the continued semiconductor scarcity, minimize the first-year goal in half. Rivian produced 4,401 automobiles through the second quarter, up from 2,553 constructed within the first quarter.

Amazon electrical supply vans accounted for a few third of the practically 8,000 EVs produced by way of the second quarter, the corporate mentioned beforehand. The primary EDVs rolled out in a dozen cities final month, however Scaringe declined to offer a goal manufacturing complete Thursday for the yr.

“We’re actually excited to begin seeing much more of those on the street,” Scaringe mentioned. “We’re very, very motivated to ship as many as doable, and positively Amazon is pushing for that as properly.”

Whereas Rivian is downsizing its nonmanufacturing workforce, it nonetheless plans to rent an extra 1,500 employees and add a second shift on the Regular plant by the top of the third quarter.

The corporate can also be constructing a second $5 billion meeting plant in Georgia, which is slated to supply Rivian’s next-generation EV on the smaller R2 platform starting in 2025.

When Rivian went public in November, buyers on the lookout for the following Tesla shortly pushed its valuation north of $100 billion. However the inventory, which hit a excessive of $179.47 in mid-November, has fallen sharply this yr amid the sluggish ramp-up. It closed at $38.84 per share Thursday, giving Rivian a market cap of about $34 billion.

[email protected]