Rivian (NASDAQ:RIVN), an EV startup that went public in 2017 in one of the largest IPOs in U.S. history, has defied Tesla and other EV manufacturers throughout the first half of 2018. Tesla (NASDAQ:TSLA), the world’s largest EV manufacturer, reported two straight quarters of delivery decreases due to supply chain delays and COVID-related lockdowns in Shanghai that halted operations at its Gigafactory.
This year, Lucid has reduced its 2022 production prediction multiple times, now targeting between 6,000 and 7,000 vehicles as opposed to its previous goal of 20,000. Arrival, based in the United Kingdom, announced on Thursday that it will reduce its 2022 aim from 400 to 600 vehicles to just 20. Rivian (NASDAQ:RIVN), which has a long-term objective of owning more than 10% of the global market, stated that it has increased production of its Rivian (NASDAQ:RIVN) R1T pickup truck, R1S SUV, and EDV commercial electric vans for Amazon (NASDAQ:AMZN), and confirmed its commitment to deliver 25,000 vehicles this year.
Nonetheless, the Irvine, California-based manufacturer confronts the same financial challenges as the car industry as a whole. As part of a reorganization strategy, the company began laying off 900 employees in July, or around 6% of its staff. After the market closes on Thursday, we’ll be watching Rivian’s second-quarter financial reports to see how it plans to overcome the industry’s difficulties, including continued supply chain issues and production obstacles.
What analysts and TechCrunch will be observing
According to Yahoo Finance data, analysts anticipate that Rivian (NASDAQ:RIVN) produced revenue of $337.52 million in the second quarter of 2022, more than tripling the $95 million it recorded in the first quarter of the year. Rivian (NASDAQ:RIVN) did not begin producing money until Q3 2021.
Rivian’s Restructuring
We’ll be watching for updates on the layoffs affecting every department at Rivian (NASDAQ:RIVN), with one key exception: manufacturing operations at its Normal, Illinois plant. CEO RJ Scaringe wrote in an internal email, “We need to be able to continue to grow and scale without additional financing in this macro environment.” He added that “To achieve this, we have simplified our product roadmap and focused on where it is most impactful to deploy capital.” The automaker may share updates on its quarterly conference call with analysts and reveal the specifics of its broader cost-cutting strategy on Thursday.
Amazon
Amazon (NASDAQ:AMZN), Rivian’s largest customer, began utilizing its EDV commercial electric vehicles to transport items in July. According to Amazon, the initial deployment includes routes in Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle, and St. Louis, and will expand to more than 100 locations by year’s end.
By 2030, the company intends to have more than 100,000 electric delivery vans on the road. On Thursday, we’ll be listening for any updates on Rivian’s intentions to deliver more vans to Amazon (NASDAQ:AMZN), which holds an 18% interest in the company, as well as any initial results on the van’s performance, safety, and durability in various climates and locations.
Production
In addition, we will be looking for an update on Rivian’s new factory in Atlanta, which earned Georgia’s largest-ever $1.5 billion incentive package. It is anticipated that the second factory would break ground this summer and begin production in 2024.
Until then, the manufacturer intends to develop its upcoming R2 platform and improve the R1 architecture that underlies its electric truck and SUV. Rivian (NASDAQ:RIVN) has announced that its new lithium iron phosphate (LFP) battery pack will debut in Amazon’s commercial vehicles later this year and become the standard architecture for R1T pickups and R1S SUVs beginning in late 2023.
Featured Image: Megapixl @Rafaelhenriquepress
