Update
March 6, 2023: Rivian to sell $1.3 billion in bonds.
Original Post
EVs: Cash Burn -- tracked here.
In The WSJ, the past two days:
Rivian cash burn. Link here.
From the linked article:
Rivian electric trucks don’t burn gas, but they sure do burn cash. The company’s stock could increasingly become a bet on the funding environment.
Free cash flow for 2022 ended up at a negative $6.4 billion, according to results posted late Tuesday, as Rivian lost money on each car it sold while also investing for the future. Airlines consumed more in pandemic-afflicted 2020, but among tech disrupters throwing new money at old markets this is a number with few peers. Netflix’s free cash flow bottomed out at minus $3.1 billion in 2019, Uber’s at $4.8 billion the same year. Amazon, Rivian’s largest shareholder and customer, has posted bigger outflows for the past two years, but only because of outsized investments.
Tesla once bumped painfully down the same road that Rivian is now on—investing in and ramping up production of the world’s largest and most expensive consumer product. It had at least 13 consecutive years of negative free cash flow, including a low of minus $4.1 billion in 2017, before reaping rewards. Lucid, Rivian’s closest peer, burned through $3.3 billion last year.
Meanwhile, Arrival, link here:
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