Rivian’s Test Your Patience With Delivery Delays
Customers and stockholders are growing more and more impatient with Rivian’s ongoing delivery delays as the electric car industry continues to heat up. Among those losing patience with the corporation is Big Sky, Montana resident Stuart Goldberg, a stakeholder from the initial public offering. He placed two deposits on an R1T and R1S in September 2019, but since then, he has gotten many email notices that his delivery date has been postponed and is now scheduled for the second half of 2024.
Promiscuities broken
Some people believe that Rivian’s failure to live up to expectations is evidence that the corporation made too many promises. Rivian has undertaken a number of challenging undertakings since its well-publicized IPO in late 2021, including the simultaneous launch of three cars, the delivery of 100,000 electric vans to Amazon, and the manufacturing of 25,000 vehicles in its first full year of operation. However, due to delayed delivery and altered price, the business’s shares dropped by roughly 80% in its first full year as a publicly listed company.
Impatient investors and angry clients
The company’s manufacturing issues are not only causing shareholders to lose patience, but they are also beginning to have an impact on its once-enthusiastic consumer base. After more than six months of receiving no information, several consumers even cancelled their orders. According to a representative for Rivian, a number of variables, including the delivery location, configuration, and initial pre-order or reservation date, affect the timeliness of deliveries. Without a track record of content customers, the business could find it difficult to retain pace through the impending economic turbulence.
CEO Focus of RJ Scaringe
In a recent communication to employees about a 6% decrease in the number of employees, Rivian CEO RJ Scaringe used the term “focus” three times. He said in the email that the business is concentrating on long-term performance while making sure it has the ideal lineup of potential future goods, services, and technology. With the company attempting to build its flagship pickup line, an SUV, delivery trucks for Amazon, a charging business, and possibly even an electric bike line, all while battling the same supply chain issues faced by the industry and competing with more and more viable rivals, this shift toward focus is essential for the company’s future.
Missed Objectives and Painful Growth
Rivian failed to fulfill its production goals in 2022, producing 24,337 vehicles and delivering 20,332 despite having $13 billion in the bank. It also had problems with its direct-to-consumer sales strategy and ambitious expansion goals at a time when its Illinois factory isn’t yet working to capacity. The business is also dealing with heightened rivalry from rival businesses who are fighting for Amazon’s business and rushing to enter the market before Rivian.
Looking Forward
Rivian is not the only EV company experiencing difficulties; Arrival and Xos have also seen several restructurings and layoffs. Rivian still has a long way to go before it can demonstrate that it can deliver on its promises and stay focused, even though it hasn’t yet witnessed the same degree of turnover as some of its contemporaries. But not all investors and order holders are worried; some are certain that the delays won’t be a problem.