Rivian Retreats As Trouble Grows
As its prospects for success become less likely, EV company Rivian retreated from plans to build a $5 billion plant. It faces the challenges of its extremely small sales and an industry in trouble. For several months, sales have been shaky in the US and EU. Rivian’s financial results recently have been awful.
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The New York Times reported, “Rivian said delaying the Georgia plant would save it about $2.25 billion, a large sum from a business that has been losing billions of dollars for several years.” Rivian announced new products as well. They have low price points. US buyers have shown that price is a key component of their sales decisions,
Too Small
Rivian has finally discovered that Americans want cheaper EVs. Its R2 SUV will carry a price point of $45,000. Its new R3 crossover will be even less expensive. One issue is that these will not be available until 2026.
Rivian’s plans are too little too late. Although its stock rallied slightly, shares are down over 65% over the last two years. Its Q4 revenue was $1.3 billion, delivering less than 14,000 cars. It lost $1.5 billion. It has lost $7 billion over the last five quarters.
No matter what tactical decisions Rivian makes, it is too small to survive.
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