After going public last year and raising almost $14 billion, shares of Rivian quickly soared. At some point, the electric vehicle manufacturer was almost worth twice as much as Ford Motor.
However, after failing to meet the 2021 production goals, shares started to stumble and are now well below the initial offering price, the NYT reports.
Rivian fails to deliver on promises
While both the Rivian R1T and the R1S are spotted in the wild with some regularity, the carmaker so far has failed to deliver the modest goal of producing and delivering 1,200 vehicles in 2021.
On social media, Rivian reservation holder M. Adams said: “If I hadn’t driven an R1T, these articles would have me looking elsewhere. But wow, it’s an amazing vehicle to drive – there’s nothing like it.”
MotorTrend named the R1T its Truck of the Year for 2022.
Rivian’s struggles worry investors
Besides failing to meet production goals for the R1T and the R1S Rivian has provided no information at all about delivering the 100,000 electric delivery vans to customer and largest investor Amazon.
Adding to the rising concerns among investors, was the unannounced leaving of Rivian’s Chief Operating Officer, Rod Copes. Instead of the carmaker making the announcement, the WSJ first reported the news. Assuming the company knew of Copes’ imminent departure, Rivian should have disclosed that information, corporate governance experts say.
Former executive, Laura Schwab, who has filed a lawsuit against Rivian, says that the company is suffering from poor management and boys club culture. Schwab also expressed concerns about Rivian’s ability to ramp up production.
“The production line doesn’t go from zero to thousands of cars overnight; it just doesn’t work that way,” she said.
Rivian’s Chief Executive Officer, Mr. Scaringe, and Rivian have not confirmed whether the carmaker has delivered any electric vans to Amazon as part of its 2021 targets.
Investors also remain in the dark about the company’s ability to fulfill its current order backlog of around 70,000 pickups and S.U.V.’s and Rivian’s production capacity.
In addition to all these concerns, Rivian, like many other companies, is struggling with supply chain issues.
“Supply chain issues remain a global concern — one that Rivian is managing through strong supplier relationships and collaboration,” a spokeswoman, Amy Mast.
We expect to receive updated information on the production numbers on March 10 when Rivian will provide its latest financial results.
In 2021, Rivian made 1,015 electric pickup trucks and SUVs.
Investors are also worried that Rivian might lose its first-mover advantage as industry experts estimate that 50 new electric vehicle models, including the Tesla Cybertruck, are coming to market before 2024.
What do you think about Rivian’s prospects? Do you share the concerns expressed by investors about Rivian failing to meet the 2021 production goals? Let us know your thoughts in the comments below.
Photos courtesy of Rivian and Facebook.