Friday, March 31, 2023

Rivian, amid financial problems and a wave of resignations

While Big Tech like Alphabet or Meta decide to reduce their staff Rivian Auto RG-AThe situation is opposite. the firm is facing Wave of top executive resignations after 2022 with heavy losses and financial problems which you still have to solve according to Ellen Chang on St.

Several high-level officials have resigned in recent months, including Director of Supply Chain and General Counsel of Rivian.

setting state laws in motion for the sale

Jim Chen, top Rivian lobbyist who worked on state laws to adopt legislators Direct-to-consumer sales by car manufacturerswill drop the start-up of electric vehicles, the latest in a series of exits, according to wall street journal,

Rivian is like other startups Cut costs while trying to increase production sales of your trucks and spend less cash,

Chen started at Rivian in 2018 and Sell ​​trucks directly to consumers instead of through dealershipsAn obstacle that is common to EV-only companies like Tesla.

“it is expected that Work till the end of February and take leave with mutual consent”a Rivian spokesperson told the WSJ.

Chen had a Same regulatory and political role at Tesla as of 2010, He left in 2016 after serving as vice president of regulatory affairs and deputy general counsel.

In addition to the chain Rivian’s head of manufacturing and chief operating officer also left last year.

Rivian’s financial problems

Rivian has faced Uphill battle as trucks start production in 2021 and it was made public with a High valuation of $86 billion during first day of trading.

Since the company went public, investors have been less enthusiastic and the stock They fell 76%.

Rivian Nearly missed 2022 production target as its shares plunged 69.7% last year, what Reduced its market capitalization to $16.79 billion.

Cash flow has also come down to $13.8 billion By the end of September. Rivian Will report earnings on February 28,

Rivian too laid off 6% of its 14,000 employees last July In an effort to save cash.

CEO, RJ Scarringthe company said Delayed the launch of its cheapest R2 trucks and SUVs till 2026 so that your The future plant in Georgia had enough time to ramp up production.

Different Tesla, which cut prices by between 7% and 20%, that allowed its customers Take advantage of the latest $7,500 tax credit provided by the Biden administration under the inflation reduction act Rivian vans are more expensive and don’t fit.

“both R1T pickup sells for under $80,000 like Rivian’s R1S SUVBut once the other features and options are added, the total cost becomes marginally lower,” the company said.

Rivian predicted Could ramp up production of its vehicles in 2022, but company hit by major disruptions related to supply chainwho led him Halve its initial production target of 50,000 vehicles by mid-year,

While Rivian lowered its target of producing just 25,000 vehicles for the full year, even this lower level was not reached. Group Only 24,337 vehicles produced,

The fourth quarter was a turning point as Rivian Built 10,020 vehicles at its single plant in Normal, Illinois, delivering 20,332 vehicles for all of 2022, including 8,054 in the fourth quarter.

In an email to employees, Scaring said Rivian It could have improved its production numbers if supply chain problems had not forced the company to shut down the plant for 20 days and disrupt production for 50 days.,

“Bad weather also forced Rivian to close the plant for the next five days,” Scaring said.

Rivian shares They rose slightly over 2.54% during the month,

Rivian Auto RG-A It is trading at $18.69 and remains well above the 70 and 200 period moving averages.

Nation World News Desk
Nation World News Desk
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