When Rivian launched its much-delayed R1T electrical pickup final fall, the opinions had been breathless.
“The good pickup ever made,” mentioned auto fanatic and widespread YouTube presenter Doug DeMuro. “Essentially the most exceptional pickup truck we have ever pushed,” declared MotorTrend earlier than naming it Truck of the Yr.
Extra just lately, the Amazon-backed startup has been on one thing of a roller-coaster experience, with final 12 months’s euphoria fading into recent issues over manufacturing targets and the departure of a prime government.
The corporate noticed its market worth soar after its November preliminary public providing, besting Normal Motors and Ford Motor Co., a key Rivian investor. In mid-December, Rivian introduced a second manufacturing unit, close to Atlanta, that can enhance the corporate’s manufacturing capability by 400,000 autos per 12 months.
“The plant, which can ultimately make use of greater than 7,500 employees, represents a key subsequent step as Rivian scales aggressively towards higher-capacity manufacturing for our future technology of merchandise,” the corporate mentioned.
However the tide shortly turned on recent struggles that underscore the lengthy street forward for the novice builder of client EVs and business supply vans.
In late December, Rivian mentioned it can delay deliveries of the R1T and the R1S SUV with extended-range batteries till 2023. The delay permits the corporate to prioritize the extra widespread standard-range autos, CEO RJ Scaringe mentioned in a letter to clients posted on Reddit.
“The subsequent a number of months will stay a steep climb as we proceed to ramp up our operations,” Scaringe mentioned.
Early within the new 12 months, Stellantis introduced that Amazon will probably be its first buyer for the brand new Ram ProMaster battery-electric van, starting in 2023. That poses competitors to Rivian, which counts Amazon as its greatest buyer with an preliminary order of 100,000 supply vans by 2025.
Final week, Rivian disclosed 2021 manufacturing of 1,015 autos — wanting its 1,200 purpose. It additionally confirmed the departure of COO Rod Copes. Rivian instructed the Wall Road Journal, which first reported the information, that Copes’ departure had been deliberate.
Within the aftermath of the latest setbacks, Rivian’s inventory worth was hovering close to its IPO worth of $78 final week after hovering as excessive as $172 in mid-November.
Whereas the latest occasions have been a comedown from the post-IPO pleasure, it definitely wasn’t sudden, given the volatility of EV startups. Tesla was close to chapter a number of years in the past however then grew to become the primary automaker with $1 trillion market worth in October.
“I believe Rivian will nonetheless be OK in the long term, however these are nice examples of how shortly a brand new automaker’s fortunes can swing, or at the very least seem to swing,” mentioned Karl Brauer, government analyst at iSeeCars.com.
Rivian mentioned in a letter to shareholders Dec. 16 that it had 71,000 buyer orders for the R1T and R1S, along with the Amazon order for its EDV vans. Rivian mentioned its deliberate capability of 200,000 autos a 12 months at its present manufacturing unit in Regular, Sick., will probably be bolstered by the Georgia plant within the close to future.
“After a 12-year journey of getting our technique and choices prepared for buyer deliveries, it has been extremely rewarding to see the thrill and enthusiasm for what we’re constructing,” mentioned the shareholder letter, which accompanied the third-quarter earnings report.
Stephanie Brinley, principal analyst at IHS Markit, mentioned Rivian faces a protracted street forward however seems to be prepared.
The Amazon order with Stellantis would not essentially threaten the EV startup since Amazon will want a number of companions to attain its zero-emissions targets, Brinley mentioned. And robust client curiosity within the Rivian model appears unaffected by latest firm information.
“As Rivian scales and ramps up manufacturing, it could proceed to see some bumps within the street, however the firm does appear ready to climate these bumps,” she mentioned. “Cracking the automotive business to turn out to be a quantity producer will take time.”