What is so special about Rivian?
Rivian is designing vehicles tough enough to go off-road. It promises far more range per battery charge than existing electric cars.
Rivian vehicles are much better for off-road and all-weather driving capabilities than Tesla cars. Another advantage of Rivian for EV buyers is off-road capabilities. Tesla and Rivian offer electric vehicles that boast excellent on-road driving dynamics.
The $50,000 double-motor Cybertuck has a 300-mile range. That's just 14 miles less than what Rivian offers with its dual-motor, Large battery truck, and that one starts at $73,500. With 500 miles of range, the tri-motor, $70,000 Tesla Cybertruck nearly doubles the range Rivian offers in the similarly-priced base R1T.
Rivian is a growth company which has all the ingredients for potential success. The company's partnership/investment from Amazon is their competitive advantage, as it effectively guarantees the firm consistent cash flows but also adds immense credibility to their product range.
Given all of the headwinds discussed, does that mean that Rivian is doomed to fail? Probably not. But, Rivian is one of thousands of unprofitable growth companies that have seen their valuations re-rated in the last few months, many of which have seen haircuts of 80% or higher.
The Rivian R1T is capable of charging a Tesla, or really any other electric car. The fully electric pickup truck has plenty of power on tap, though the more important part here is its built-in inverter that allows it to deliver power to other EVs.
Rivian filed for an initial public offering back in August. The 12-year-old company, which is backed by Amazon and considered one of the biggest threats to Tesla, is now one of the world's most valuable automakers, worth billions more than Ford or GM — even though, as of October, it's only delivered 156 vehicles.
While Tesla and Rivian are direct competitors and two major names in the EV industry, it's difficult to choose one company as the best for every consumer. Both are strong companies to invest in. Tesla, however, is larger, more established, and has a wider range of EV models available for consumers to choose from.
Rivian Automotive, Inc. is an American electric vehicle automaker and automotive technology company founded in 2009.
R1T Adventure Delivery Estimates
Quad-motor builds of the R1T Adventure have been delivered in record time, with at least one delivered in less than 40 days from the date of reservation. The shortest projected time frame for the R1T Adventure delivery is within 2-3 months.
Why is Rivian so popular?
Rivian won the race to build the first electric pickup truck
Americans love pickup trucks and drop a lot of money on them, so automakers were competing to bring the first battery-powered truck to market. Rivian won that race, starting deliveries of its R1T this fall.
If Rivian stays in its adventure-based audience niche and doesn't expand its lineup with cheaper offerings, it's unlikely Rivian can find a wide enough audience to match Tesla's customer base.
Summary. Despite a 75% drop in valuation, Rivian is still overpriced. Competitors like Ford have much more production capability and a lower price. Continued chip and metals shortages will affect Rivian more than other competitors.
However, since Rivian Automotive's IPO at the end of 2021, the stock has consistently underperformed. Rivian Automotive's decline has accelerated since the company announced in February that it is reducing its production forecast for 2022 by 50% due to growing part sourcing issues.
Rivian reported a $1.6 billion net loss in the first quarter on revenues of $95 million. The company said it expects supply-chain issues to ease later this year. Its market cap is now just over $27 billion, with shares around $30.
This is Rivian, one of the three companies Sandy Munro says will survive. Peter Rawlinson, CEO of Lucid Motors, says that Rivian R1T should be priced at $95,000 or more to be profitable. One thing Rivian did wrong was raising prices after orders last year of vehicles, and causing a back lash with current customers.
A Rivian Membership subscription's bundle of benefits includes, under the current “beta” terms and conditions, unlimited free charging at Rivian chargers. Rivian buyers will get free trial membership for a year, after which there will be a still-to-be-determined charge.
Rivian's coverage is eight years or 175,000 miles (roughly 280,000 km), whichever comes first.
Ford Motor said Tuesday that it sold 1,837 of its electric F-150 Lightnings in June and that it has sold 2,296 in total since beginning production in late May. From the beginning of production in late 2021 through the end of June, Rivian produced a total of 7,969 vehicles.
Is Rivian stock a good investment? Whether Rivian stock is a good investment depends on your investment goals and your evaluation of the company. As of May 3, 2022, Rivian's market cap was more than $28 billion. Yet, Rivian is still seen as having too high of a valuation, according to some Wall Street analysts.
Why is Rivian stock dropping?
Shares of the electric vehicle maker Rivian Automotive (RIVN -4.74%) fell this morning, likely because investors were processing news about growing frustration about wait times for customers who've pre-ordered Rivian vehicles.
Scaringe said the price increases are due to rising costs of the components and materials that go into building its vehicles. Rivian is also scrapping the 5-seat R1S electric SUV.
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Kyle Conner checks out the R1T's driver assistance features.
| Category | Autonomous Vehicles |
|---|---|
| Make/Model | Rivian R1T |
| Body Style | Truck |
EV Motor, Power, and Performance
All-wheel drive is standard on the 2022 R1T but it uses a different arrangement than the Tesla Model X: Each wheel of the Rivian is powered by its own electric motor. The R1T boasts up to 835 horsepower and blasted to 60 mph in just 3.3 seconds at our test track.
According to CarBuzz, Rivian has been forced to delay the deliveries of roughly 20% of R1Ts that have been ordered already. This delay has to do with Rivian's battery options. Most Rivian customers have ordered their R1T with the standard 135-kWh battery, which gets about 314 miles of range.
Rivian shares have dropped nearly 21% since CNBC reported the sale over the weekend. T. Rowe Price Associates is the largest shareholder in the electric car maker with an 18.2% stake, followed by Amazon.com Inc's 17.7% stake.
Rivian is also progressing fine with its production. Although supply chain issues impacted Rivian's production targets for 2022, the company recently reaffirmed its revised target of 25,000 EVs for the year. Data source: Rivian.
Amazon owns about 17.7% of Rivian, while Ford owns 11.4%. Amazon was not expected to sell, Bloomberg reported.
Rivian beats Tesla, Ford, GM to build first EV pickup
The average price for the additional vehicles reserved was $93,000 and Scaringe said it currently has a total of over 90,000 reservations. Rivian built 2,553 vehicles in the first quarter and approximately 5,000 since production began last year.
“These figures remain in line with the company's expectations, and it believes it is on track to deliver on the 25,000 annual production guidance previously provided,” Rivian said in a statement. In the first quarter of 2022, Rivian produced 2,553 vehicles and delivered 1,227.
Where is Rivian made?
Rivian vehicles are made at our state-of-the-art manufacturing facility in Normal, Illinois.
How does Rivian make money? Rivian will make money through sale of its range of EV automobiles. At present the company offers only two models, with the R1T starting at around $75,000, and the R1S. The pre-order launch editions of the two vehicles sold out at the end of 2020.
Amazon invested in electric vehicle maker Rivian in 2019 as part of a plan to go green. During the first quarter, it saw nothing but red. In its earnings report on Thursday, Amazon took a $7.6 billion loss on its stake in Rivian.
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After going public at a valuation of $90 billion last November, Rivian saw its stock surge as high as $179 per share before crashing down to earth in 2022: Shares of the electric vehicle maker are down 77% so far this year.
This week, Rivian announced it is laying off 6 percent of its workforce. Since the beginning of the year, Rivian has lost two thirds of its market value. In the first quarter, Amazon recorded a $7.6 billion loss from its Rivian stake, resulting in the tech giant's first losing quarter in eight years.
The company identified headwinds including a planned 10-day shutdown to improve its production lines, supply chain constraints, a spike in COVID-19 cases from the spread of the omicron variant, and even severe winter weather at its Illinois facility.
The all-electric 2022 Rivian R1T has a potent powertrain, great driving dynamics, innovative features, and generous cargo space, but it also has a high price and distracting touch screen. This vehicle does not have an overall score or ranking because it lacks safety and reliability data.
When asked about reasons for sales, Ford told Barron's in an emailed statement that the company “was to monetize some of the gains” on its Rivian investment. That, of course, is another good reason for the company to sell part of its stock.
Despite hiccups, Rivian is likely to be successful, he said. “They already have trucks in the hands of customers, and that's more than other companies can say.” And the company also offers a “unique product that looks and feels different than anything else already out there,” he said.
Does Rivian have a future?
Rivian is also progressing fine with its production. Although supply chain issues impacted Rivian's production targets for 2022, the company recently reaffirmed its revised target of 25,000 EVs for the year. Data source: Rivian.
This is Rivian, one of the three companies Sandy Munro says will survive. Peter Rawlinson, CEO of Lucid Motors, says that Rivian R1T should be priced at $95,000 or more to be profitable. One thing Rivian did wrong was raising prices after orders last year of vehicles, and causing a back lash with current customers.
Rivian shares have dropped nearly 21% since CNBC reported the sale over the weekend. T. Rowe Price Associates is the largest shareholder in the electric car maker with an 18.2% stake, followed by Amazon.com Inc's 17.7% stake.
Amazon owns about 17.7% of Rivian, while Ford owns 11.4%. Amazon was not expected to sell, Bloomberg reported.
