Rivian Takes A Serious Hit For One Key Reason

Electric Vehicles / Comments

There's a lesson to be learned here.

Rivian's IPO last month was all over the news for a good reason. Valued at over $77 billion, it was suddenly thrust into the stratosphere alongside the likes of GM ($85 billion) and Ford ($80 billion). The Blue Oval is one of Rivian's key backers and it too scored a solid return on its investment. But the party at Rivian is winding down somewhat as reality sets in.

The electric truck and SUV company, whose only two products (for now) are the R1T truck and R1S SUV, admitted this past week it failed to meet its third business quarter vehicle production target. The stock market immediately reacted. By Friday morning, Rivian shares took a nosedive by 15 percent, a new low since its November 10 IPO.

2022 Rivian R1T Truck Frontal Aspect Rivian
2022 Rivian R1T Truck Rear-Facing View Rivian
2022 Rivian R1T Truck Side View Rivian

This is also the first time Rivian shares have dipped below $100. Rivian acknowledged it'll fall a few hundred units short of its 2021 production goal of 2,100 vehicles.

"Ramping up a production system like this, as I said before, is a really complex orchestra," said Rivian CEO R.J. Scaringe. "We're ramping largely as expected; the battery constraint is really an artifact of just bringing up a highly automated line, and, as I said, it doesn't present any long-term challenges for us." The good news is that Wall Street and industry analysts expected there could be some production issues.

2022 Rivian R1T Truck Front View Rivian
2022 Rivian R1T Truck Trunk Floor Storage Rivian
2022 Rivian R1S SUV Front Angle View © 2018 Ben Moon
Everything You Need To Know About The 2023 BMW X8
Everything You Need To Know About The 2023 BMW X8
9 Best New Cars For Winter 2022
9 Best New Cars For Winter 2022

Rivian is a new automaker and it's immensely challenging to get the ball rolling. Just ask Tesla, which is now the world's most valuable automaker with around a $1 trillion valuation. Rivian's stock drop is probably only temporary and there are already signs of recovery. Rivian says that as of the middle of this month, the number of reservations for the R1S has increased from 55,400 in November to 71,000. The company admitted this increase is higher than expected.

Earlier in the week, Rivian announced plans to build a new $5 billion plant in the state of Georgia. Production is expected to get underway in 2024.

2022 Rivian R1T Truck Driver Area Rivian
2022 Rivian R1T Truck Central Control Panel Rivian
2022 Rivian R1S SUV Badge Rivian

Join The Discussion

Gallery

2022 Rivian R1T Truck Front-End View
2022 Rivian R1S SUV Badge
2022 Rivian R1S SUV Front Angle View
2022 Rivian R1T Truck Driver Area
2022 Rivian R1T Truck Side View
10
Photos
Back
To Top