In a recent interview with Reuters, Mate Rimac had plenty of positive things to say about his brand’s joint venture with Bugatti. The partnership, which was revealed in the summer of 2021, has resulted in “lots of synergies going both ways” according to Rimac. Furthermore, Rimac claimed the joint venture has been very profitable thus far. He stated the following (via Reuters):
“It’s highly profitable and cash flow positive beyond anybody’s expectations. It’s such a win-win situation for everybody.”
Undoubtedly, profitability is a significant challenge for hypercar manufacturers. After all, they spend extortionate amounts of time and money developing a vehicle only to sell it in incredibly low volumes. For example, the Bugatti Veyron was infamously one of the biggest loss-making cars ever made despite its $1 million+ starting price.
However, Rimac Automobili is slightly different. It’s not just a hypercar builder, but also a successful battery and drivetrain supplier. The firm has attracted plenty of investment, with Porsche taking up a 24% stake (Porsche also owns 45% of Bugatti Rimac). Furthermore, Rimac raised over $500 million in Series D funding earlier this year.
When questioned on future plans, Mate Rimac highlighted Ferrari as a good example of a hyper/supercar firm that’s stable and predictable. He believes Rimac Bugatti must become more like the Italian brand, at least in terms of profitability and stability, before it can consider an IPO.
Deliveries of Rimac’s second production model, the Nevera, commenced in August with the first example being delivered to former F1 World Champion Nico Rosberg. The Nevera is the world’s fastest EV with a 257 mph top speed and 1.85 second 0-60 mph time. The electric hypercar starts at roughly $2.4 million.