Rivian Automotive is going through scrutiny over its working prices, capital expenditures and money burn as a part of second-quarter earnings after the market shut Thursday, because the EV maker boosts manufacturing at its Illinois manufacturing unit and plans for a second plant in Georgia.

Irvine, Calif.-based Rivian elevated automobile deliveries within the second quarter to 4,467, from 1,227 within the first quarter, and assembled 4,401 autos final quarter in contrast with 2,553 within the January-March interval. The automaker mentioned it has been constructing principally R1T pickups however just lately introduced launches for its R1S SUV and EDV business vans for Amazon.

Rivian forecasts manufacturing of 25,000 autos this yr and has been implementing cost-cutting measures to realign its spending priorities. The corporate’s plant in Regular, Sick., has a manufacturing capability of 150,000 models a yr.

Final month, Rivan introduced a 6 % discount in its workforce, which was at about 14,000 earlier than the announcement. Rivian mentioned it needs to optimize spending on rising its output and on growing its R2 platform for the Georgia plant.

Market analysts are targeted on how a lot cash Rivian is burning via due to its comparatively restricted deliveries and its rising prices on account of present and future growth.

“Rising gross sales of battery-powered autos amid heightening local weather considerations are anticipated to buoy Rivian’s second-quarter 2022 outcomes,” Zacks Fairness Analysis mentioned in a notice this week. “On the flip aspect, Rivian — being within the nascent stage of growth — has been burning money.”

Rivian’s working bills within the first quarter totaled about $1.1 billion, up from $410 million within the year-earlier interval, Zacks mentioned, placing the automaker’s second-quarter numbers beneath scrutiny.

“Huge working prices within the second quarter, stemming from superior product growth actions, are prone to have dented margins,” Zacks mentioned. “Additionally, excessive [capital expenditures] to help further manufacturing capability and infrastructure is prone to have clipped money flows.”

Bloomberg Intelligence famous Rivian’s rising manufacturing on higher administration of its supply-chain constraints. But it surely additionally highlighted the automaker’s enormous money wants. Rivian faces competitors within the EV pickup market from Ford, Tesla and Normal Motors.

“Although the corporate has a excessive money stability, it could want extra liquidity in 2025, sooner than it plans, as competitors from Ford, Tesla and GM hastens,” Bloomberg Intelligence mentioned. “Rivian could burn round $19 billion in money via 2024 because it expands operations, whereas shareholders Amazon and Ford do not look like capital sources.”

Each Amazon and Ford Motor Co. have reported billions of {dollars} in paper losses on their Rivian investments this yr.

Ford launched its F-150 Lightning EV pickup within the spring, coming behind Rivian’s begin of manufacturing in fall 2021. Tesla plans to launch its Cybertruck in mid-2023 and Chevrolet has mentioned manufacturing of its Silverado EV will begin in spring 2023.

Based on Refinitiv knowledge reported by Reuters, Rivian is predicted to report income of $337.5 million, based mostly on the imply estimate from 13 analysts.

Refinitiv’s imply analyst estimate for the automaker is for a lack of $1.63 per share within the second quarter. Wall Avenue’s median 12-month value goal for Rivian’s inventory value is $55, above its Wednesday closing value of $37.40, Reuters mentioned.