In an e-mail, Rivian instructed R1S (SUV) prospects that their preorders wouldn’t be fulfilled by July as deliberate. As a substitute, they may have to attend so long as December. In the meantime, Elon Musk — shock shock — posited the corporate ‘will go bankrupt’ except one thing adjustments.
There’s no mistaking that Rivian has attracted a number of consideration because it launched “the world’s first off-road electrical pickup truck” again in 2018. A number of the hype has registered as nice information for the corporate, however not all of it.
The latest splash Rivian made within the EV market greater than probably falls within the latter class.
On Tuesday, the corporate emailed prospects awaiting the long-anticipated R1S SUV that they’d need to hold ready. Rivian beforehand promised to ship the R1S by this June or July. However the e-mail, which some reservation holders reportedly didn’t obtain, pushed that promise out as late as December.
After first asserting the automobile and making it out there for preorder in 2019, Rivian unveiled the R1S in late 2021. It then promised first deliveries of the SUV in January 2022. By November, it had already introduced the primary spherical of supply delays.
The corporate attributed the newest hangup to ongoing provide chain points and its restricted service infrastructure. It mentioned that it might first prioritize deliveries to areas close to Rivian’s few service facilities. The corporate presently operates these services in simply 14 states, so prospects in different areas may face a fair longer wait.
“As we’ve continued to navigate a decent provide chain, we’ve needed to scale back complexity wherever potential, together with prioritizing sure construct combos over others,” the e-mail mentioned.
The announcement particularly infected some consumers in distant areas, additional faraway from Rivian’s bodily presence. One buyer on the corporate’s discussion board lampooned “[t]he irony of an off-road journey automobile delivered solely to main cities.”
Rivian’s Battery Retains Draining
It’s one other fly-in-the-ointment for Rivian’s troubled SUV mission. Its first manufacturing automobile, the R1T truck, garnered some glowing critiques (together with from GearJunkie) and helped propel the corporate to titanic monetary standing. (At one level, with solely a tiny quantity of manufacturing vehicles on the street, it swelled to a valuation much more huge than Ford and GM.)
However consumers of each the truck and the R1S went ballistic in March when the corporate proposed substantial value hikes for every automobile. The announcement precipitated Rivian (RIVN) to tank on Wall Road, and CEO RJ Scaringe even mentioned it “broke the belief” the corporate had established with its consumers.
Rivian dropped the value hike for current prospects amid the backlash. However now within the face of the brand new supply delay, it’s sure to face extra public relations headwinds. And plunging inventory costs (down 75% since a December spike at $115 per share) nonetheless haven’t considerably recovered.
Proper on cue, Tesla CEO Elon Musk took a possibility to supply a forecast on the corporate’s future in a podcast on Tuesday.
“Except one thing adjustments considerably with Rivian … they’re monitoring towards chapter,” he mentioned within the interview with Tesla House owners Silicon Valley.
It’s at all times somewhat arduous to inform what Musk is absolutely as much as; does that quantity to a legitimate market perception or a swipe meant to destabilize rival Rivian inventory costs?
Potshot or prophecy, one factor’s clear: Rivian must cease overpromising and underdelivering.