According to Morgan Stanley analyst Adam Jonas, Rivian’s enterprise value, which is simply its market capitalization less net cash, is “now barely above zero dollars.” This communicates to investors that unless Rivian can control its supply chain, it may have to dilute shareholders.
Rivian CFO Claire McDonough responded that the company had $17 billion in cash on hand, which should allow it to scale up production at its Normal, Illinois plant to profitability.
Rivian has responded by scaling back its expectations and sticking to a more modest timetable for the rest of the year, delivering only 25,000 vehicles in 2022, according to its previous earnings report. Rivian stated in its first-quarter earnings that it is on track to produce that number of vehicles this year.
