Rivian’s Languorous Manufacturing Pace

[Tinker71]

Another difference between Tesla and Rivian is the fact that Rivian is being backed by Amazon (last I heard, it was a 20% stake) at its IPO. While this fact may bolster confidence in Rivian's ability to survive, it also complicates how Rivian will operate: We have already seen Amazon use its influence to supersede consumer purchases. If Rivian doesn't build out the support structure (service centers, galleries/stores, charging infrastructure), how well will they do with the consumer market once Amazon has electrified their fleet?

I think people are discounting the delivery van. I bet that is a very well designed vehicle. If the range was extended and they went mass market that could be a very good product. I bet alot of contractors would go for it. EV RV? Mormon families.

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[swengl]

I think people are discounting the delivery van. I bet that is a very well designed vehicle. If the range was extended and they went mass market that could be a very good product. I bet alot of contractors would go for it. EV RV? Mormon families.

An EV van serves the purpose of helping companies go more carbon neutral, so once Amazon get's their fleet, I could see a large market for a EV delivery van. If the TCO is favorable, a van may sell even better than their truck (especially if they are producing more of the vans to drive the cost down with the economies of scale).

 

[myrickma]

Rivian will be propped up by Amazon for years (20% share and 100,00 vans preordered). They're handing them money, then they hand it right back and call it a sale and return on investment. Not an uncommon practice with a startup I'm sure. The market knows this and will play it accordingly.

 

[CyberGus]

...By the time Tesla‘s Market Cap was $100b we’d seen hundreds and hundreds of articles about how people buying TSLA were speculating. Yet here we are with Rivian which is much riskier at this price point and nobody in the media is calling this out as being high risk and speculative?

Rivian, Nikola, and all the other EV brands are drafting off of TSLA's sky-high valuation. There's no way these companies would have a fraction of their current value if Tesla hadn't blazed the trail.

 

[Crissa]

There's also the massive demand that all EVs are showing in the market. No gas-powered vehicles see hundreds of thousands of pre-orders. Possibly ever.

Tesla is an outlier in an already hot market.

-Crissa

 

[CyberGus]

There's also the massive demand that all EVs are showing in the market. No gas-powered vehicles see hundreds of thousands of pre-orders. Possibly ever.

Tesla is an outlier in an already hot market.

-Crissa

It was Tesla that made EV's "cool". Previously, EVs were all of dubious utility and value, there was no charging network to speak of, etc. Even as Tesla was growing exponentially, the naysayers were shouting "doom, doom DOOM for Tesla and EVs!" until the shorts all lost their shorts.

 

[Crissa]

Yes, Tesla proved something tech people knew was possible given the investment. See also the EV1.

Had automakers actually moved forward with the batteries at the time, we would have had a supply of great short-range commuter vehicles. But they sat on it instead.

But we're talking about today. Today the incumbent manufacturers are not matching demand, which many smaller companies are proving - not just Tesla - that they can garner buyers and cost-effectiveness.

Even EV motorcycles are crossing the country - there's another attempt as we speak of an Energica going from Florida to California. That's really pushing what an EV can do, not having the space or aero like a car could for bulky chargers and batteries. EVs are proving themselves cost-effective police patrol and interceptors. The evidence is out there, and it's not just Tesla anymore. Even the Leaf proved itself cost-effective, if not sexy like Tesla's offerings.

-Crissa

 

[Ogre]

The thing that blows me away is how poorly investment magazines cover this.

It would be less annoying if they were just “EV companies are high risk, keep away”, but they are steering people away from the least risky towards the most risky EV companies.

I understand the argument that Tesla is risky. But Rivian and Lucid are far more likely to crash. The seeming logic is they will be the next Tesla, but they‘d need a time machine to do that.

 

[Ogre]

Another difference between Tesla and Rivian is the fact that Rivian is being backed by Amazon (last I heard, it was a 20% stake) at its IPO. While this fact may bolster confidence in Rivian's ability to survive, it also complicates how Rivian will operate: We have already seen Amazon use its influence to supersede consumer purchases. If Rivian doesn't build out the support structure (service centers, galleries/stores, charging infrastructure), how well will they do with the consumer market once Amazon has electrified their fleet?

I’m more concerned with what happens when Amazon wants to sell their stake and all the retail investors are left holding the bag.

Doubly so with regards to Ford who are looking to fund a massive EV operation of their own and already have a significant debt load.

 

[swengl]

I’m more concerned with what happens when Amazon wants to sell their stake and all the retail investors are left holding the bag.

Doubly so with regards to Ford who are looking to fund a massive EV operation of their own and already have a significant debt load.

Indeed, that is definitely a risk. If their structure and product are solid enough, someone would snatch them up. I guess time will tell, right?

 

[CyberGus]

The seeming logic is they will be the next Tesla, but they‘d need a time machine to do that.

 

[Dirt Worker]

The front end of the Rivian is a deal-breaker for me with the ? nerdy eyeglasses look. Then, it finishes with the metro Honda Ridgeline look throughout.

NOT for $90k. Maybe 30k.

I have been trying to find the image of the Star Wars droid it resembles.

 

[Bill906]

These are not the droids you are looking for?

 

[Richard V.]

This in my opinion is a very bad investment. But I am no pro in this job...

 

[SpaceDoc]

Can’t make this nonsense up. How can you make a $100 billion truck company’s inability to actually make trucks sound cool? CNET sure tried.

CNET posted an article talking about the fact that it’s likely to take Rivian 2 full years to service their 50k order backlog and the way they do it is.. bizarre.



https://www.cnet.com/roadshow/news/you-may-not-get-your-rivian-r1t-until-2023/#ftag=CAD-09-10aai5b

It’s not their fault though…



I just love how Tesla has “Production Hell” and cranks out more than 100k Model 3s in a year. Rivian is going to take 2 years filling their 50,000 pre-orders and it’s a “Languorous Manufacturing Pace”. Almost like waiting around a day at the spa.

This is why Tesla had to sell a million cars before their market cap hit $100b and Rivian managed to hit $100b after… 125? Marketing.

The first company to mass produce anything or produce any new or revolutionary tech takes all the heat, everyone else enters the market at their own pace. Especially so if that company doesn’t attempt to control the narrative.

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