Rivian did not meet its 2021 delivery goals.
Its IPO was massive, but the company’s stock has fallen by 2/3.
Rivian is the 2021 poster child for EV startups. The path to near-instant stardom led the EV company to make deals with huge global players, namely Ford, T. Rowe Price, and Amazon, which snowballed into a stock gold rush when their IPO was launched. Problem is that months later and despite all the money, nothing much has happened.
The rock star that was Rivian three months ago no longer shines quite as bright. Although their 2021 delivery targets were just barely missed, they still failed to deliver 1,200 vehicles. Only 1,015 left the assembly line last year. What’s more, Amazon, Rivian’s biggest backer, has yet to confirm if they’ve actually taken delivery of their electric delivery van.
Most automakers boast reservation numbers and Rivian has shared that they currently have some 70,000 names on a list for a new R1T truck or R1S SUV. The problem here is that Rivian’s not told investors if they’d be able to get through the backlog in 2022 according to the New York Times(subscription required).
Rivian’s had part supply issues like all other automakers but that’s not helping investors.
“Supply chain issues remain a global concern — one that Rivian is managing through strong supplier relationships and collaboration,” a spokeswoman, Amy Mast, said in an email.
Another element that is hurting investor confidence is that Rivian was “first”, but they are falling behind. Ford, GM, and other automakers will shortly begin production of their electric trucks which could hurt Rivian’s once advantageous position.
“The biggest issue: They need to produce two cars at a pace where they do not lose this window of opportunity,” said Dan Ives, an analyst and managing director at Wedbush Securities. “And that’s what keeps investors up at night.”
Finally, Rivian’s been accused of a poor management culture by a former executive.
So far, however, those who’ve tested and reviewed the R1T have had only positive things to say about the electric pickup.