Rivian was once seen as “the next Tesla,” the electric-car maker poised to grow rapidly and unsettled century-old giants of the auto industry such as Ford Motor, General Motors and Volkswagen. It plans to build an electric pickup truck and sport utility vehicle — models that will differentiate it from the minimal electric cars Tesla makes.
The company has received billions of dollars in backing from investors including Ford and Amazon, which announced its intention to buy 100,000 electric delivery vans from Rivian.
Rivian’s IPO was the biggest of 2021, and its shares soared within days. For a time, the company’s market value exceeded that of Ford and General Motors combined.
But difficulties in procuring key computer chips and manufacturing issues at the Normal, Illinois factory have kept output well below the company’s expectations. It has also been working to build delivery vans for Amazon. Shares of Rivian tumbled, and investors remained concerned about the company’s prospects.
Now, as production climbs, it faces a tougher competitive landscape. Ford has already started production of its electric pickup, the F-150 Lightning, which could outsell the Rivian by the end of the year. Ford, Volkswagen, Hyundai and several other companies have ramped up sales of electric SUVs, and GM said it will start selling an electric version of its Chevrolet Silverado pickup and a pair of electric SUVs next year.
Buyers of some Rivian vehicles are expected to soon be denied federal tax credits under a climate bill the House of Representatives is expected to approve Friday; the Senate passed the bill on Sunday. Under the bill, purchases of vans, SUVs and pickups that cost more than $80,000 would not qualify for the tax credit. Individuals or couples earning more than $150,000 or $300,000 a year are also not eligible for these points.
Rivian said last month it would lay off about 6% of its 11,500 employees. “To reach our full potential, our strategy must support our sustainable growth while we are profitable,” Mr Scaringer said in a letter to employees. “In this macro environment, we need to be able to continue to grow and scale without additional financing.”
