Rivian’s monetary efficiency is one other main concern. The firm raised huge quantities of money for its 2021 preliminary public providing, however is now burning by that money quarter by quarter.
The automaker stated it delivered 20,332 autos final yr. As a part of third-quarter earnings, Rivian stated it had about $14 billion in money to fund its operations, develop less-expensive autos and construct a second plant. The base R1T has a beginning worth of $74,800 with delivery.
Rivian is just not alone in drawing contemporary scrutiny from business analysts amid excessive hopes for EV startups in recent times.
Lucid Motors, which launched its Air sedan in late 2021, stated final week that it must drum up larger demand in opposition to macroeconomic headwinds. Lucid reported a fourth-quarter web lack of $473 million. Lucid’s inventory worth has fallen about 70 p.c during the last 12 months.
Steve Weiss, managing accomplice at Short Hills Capital Partners, stated on CNBC final week that Rivian’s troubles are removed from over. The automaker’s inventory worth, down about 75 p.c within the final 12 months, is prone to fall additional, he stated.
“They’ve got a lot of cash, but they’re going to go through it,” Weiss stated. “No. 1, I don’t find the vehicles particularly attractive. No. 2, they’ve had major problems. No. 3, they’ve lost a lot of executives and talent.”
In the final six months, not less than half a dozen executives have left the corporate.
Among the departures are Randy Frank, who was vice chairman of physique and inside engineering, and Steve Gawronski, vice chairman for elements buying, The Wall Street Journal reported final month. Rivian confirmed the departures. Rivian additionally misplaced its chief lobbyist, normal counsel and a senior technique director.
The automaker has had two rounds of layoffs previously yr, every shedding about 6 p.c of employees. The newest, in February, included about 840 staff out of a complete work power of 14,000.
Brauer stated Rivian is experiencing a number of the troubles that Tesla confronted when it was a youthful firm. Tesla took a decade to turn into worthwhile — and practically went bankrupt within the course of, in line with its CEO Elon Musk. But Tesla had the benefit of being the one firm with premium EVs at the moment.
Rivian, however, is looking for a pathway to profitability in what seems to be to be an intense interval of competitors, with legacy automakers getting severe about EVs and Tesla planning the subsequent part of its product portfolio.
“The financials for Rivian are just painful right now,” Brauer stated. “They’re spending lots of money and not coming anywhere near paying for it with sales.”
Source: www.autonews.com