Rivian Looks to Lead the Electric Vehicle Revolution Despite Continued Struggles

Electric vehicles (EVs) were once thought of as the vehicles of the future, but in the past few years, they have entered the mainstream. Numerous manufacturers are creating EVs, and buying one no longer makes you an outlier. Instead, there is a greater push than ever, with initiatives and technology rising to the challenge, and EV startup Rivian wants to be at the forefront despite obvious challenges.

Rivian started strong with its IPO in 2021, but that has quickly changed. The first day of trading ended at over $100 per share after an IPO price of $78. However, the inflated share price did not last. Now, the startup’s shares trade for around $18 as the company moves into 2023.

The EV startup has been plagued by problems, including turnover. One major problem for Rivian has been the high turnover of executives. Perhaps the most impactful instance was when the company’s COO, Rod Copes, retired while the company was attempting to increase production.

• The top ranks of Rivian changed greatly, resembling a tech startup more than a car company.
• Talent from companies like Apple and JP Morgan joined, while executives from companies like Aston Martin and Harley Davidson left.
• The startup was also forced to lay off over 800 employees earlier this year to hasten its path to profitability.

Competition has been tough for Rivian. When Tesla rose to fame, there was not much competition, whether it be in the EV market or for talented employees. However, Rivian has faced a different world, with major car companies entering the EV market with no signs of slowing down.

Investors have been unhappy. The tremendous decrease in stock price since the startup’s IPO left many investors upset. However, they were further agitated when Rivian raised the prices of its vehicles, which prompted multiple class-action lawsuits. The lawsuits accused the startup of inflating share prices and misleading investors.

• The price for pre-order customers was supposed to increase by around 20% as well, but the company revoked that decision after customer outrage.
• Customers saw prices rising anywhere between $10,000 and $20,000 after the price changes.

Production has proved problematic, but Rivian pushed through. Things have not been smooth sailing for Rivian. The startup planned to begin production for three vehicles, including a pickup truck, SUV, and delivery van. However, it has faced supply-chain, sales, and production problems that saw its year-end goal decrease from its original 50,000 to 25,000 vehicles.

Additionally, at the end of the third quarter, it seemed like Rivian would fail to meet its halved production goal since it had only produced around 14,300 vehicles. However, in the final quarter, it seems like the company might have managed to hit its mark. Even if it did not, the company has started to regain some of its momentum moving into 2023.

Rivian’s R1T and R1S have gained some positive attention this year. Despite its many troubles, the EV startup has managed to impress people with its high-quality vehicles. K.C. Colwell, Car and Driver’s executive editor, mentioned how impressed he was with Rivian’s R1T. He said, “Rivian built a really good EV that happens to be in the shape of a pickup. The interior materials are high quality too.”

EV companies like Rivian have a lot to look forward to in 2023. Through IRA EV tax credits, certain vehicles could be eligible for a $7,500 credit. New models are also on the rise, meaning there will likely be more affordable options on the market as EVs continue to increase in popularity. Additionally, J.D. Power analysts have revealed expectations for increased EV investment in 2023.

There is also an expectation that lithium will decrease in price in 2023, which could offer significant benefits to EV companies. All of these aspects are good news for Rivian, which seems to be getting a handle on production as it pushes to lead the EV revolution.