Rivian lost $1.7 billion in three months. Here’s why that may not be a problem

Washington, DC (CNN)Rivian lost a whopping $1.7 billion in the second three months of the year, but some auto industry experts say it’s no cause for concern.Huge losses are to be expected when a new automaker grows. Building millions of vehicles requires investing billions in equipment and employees. Entire factories need to be outfitted from scratch. Supply chains laid out. Engineers need time and money to develop vehicles and everything they need, from propulsion to suspension to brakes, from the ground up. And those engineers need a human resources department.Tesla became the first company to establish itself as a mass-market American automotive company since Chrysler do so in the 1920s, and now Rivian wants to follow suit. It’s the US startup widely viewed as having the best shot, given its deep pockets, A-list investors — which have included Amazon and Ford — as well as its engineering talent. Amazon owns roughly 18% of Rivian, as of Nov. 2021, and has ordered 100,000 delivery vehicles from the company. Ford invested $500 million in Rivian in 2019 and its executives previously sat on Rivian’s board of directors.