Rivian Layoff 10% Staff and Lowers Production Forecast for 2024

[Electrified Outdoors]

After hours trading. It'll be lower in the morning. Google's stock ticket shows after hours value

??‍ Well let's put this in context. I see 13.25 after ...hours last April. It was $12 a share. I'm not a financial advisor, but it might be a good time to increase one's position. ?

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[Electrified Outdoors]

Unfortunately my guess is it will be more than 10% over the next few years. It's a long road and time till R2's are actually sellable to the public. I am sure they figured that in when deciding to build a plant from ground up. Not sure they recognized the limited market for the R1 however.

But there is a big gap in time now from stagnant R1 sales and R2 production.

I still wish they had figured out a way to get R2's out quicker by using existing facilities.

They need to bring out the explore trim and come with some incentives and slightly lower price.

 

[Biturbowned]

Downgrades tomorrow probably…

 

[SANZC02]

I read the letter, seems like all things that should have been expected. I think the progress they are making is pretty much on schedule and if they actually have a positive quarter in q4/24 it will be excellent.

If they start making progress on the GA plant this year combined with a positive q4 then we should see some positive stock movements mid 2025- mid 2026. I’ll watch tomorrow, might be time to do a little more averaging down.

 

[COdogman]

Unfortunately my guess is it will be more than 10% over the next few years. It's a long road and time till R2's are actually sellable to the public. I am sure they figured that in when deciding to build a plant from ground up. Not sure they recognized the limited market for the R1 however.

But there is a big gap in time now from stagnant R1 sales and R2 production.

I still wish they had figured out a way to get R2's out quicker by using existing facilities.

I think it was the right choice to build a new factory but the year long delay with lawsuits probably did more damage to the timing than they would ever admit.

I think if interest rates come down this year and Rivian can do more leasing it will be a decent bridge. And selling the lease returns is a good revenue stream for most automakers I believe. They will be walking a tightrope for sure over these next few years.

 

[BigSkies]

Effectively flat sales for the year is a real disappointment. Particularly after the introduction of variants at a lower price point.

They're going to blow through around nearly 40% of their $11.5B cash pile this year with a $2.7B loss and $1.75B in Capex.

It's hard for me to see an outcome where Rivian doesn't put itself up for sale in 2025. I really want to see Rivian succeed independently, but it's hard to stay optimistic with projections like this.

 

[SANZC02]

Downgrades tomorrow probably…

If any analyst downgrade tomorrow they have not been paying attention. Everything I saw in the letter should not move the needle up or down at this point.

 

[dleepnw]

ok, so based on this image from the shareholder letter, it looks like it'll have dual motors option and a more traditional suspension system. also dont see a skateboard, so maybe its unibody? i guess that would make sense. yellow calipers! and the wheelbase based on the wheels here (if we assume its the 20" AT darks), looks to be actually pretty close to the R1S.

 

[djsider2]

Maybe they cut that software team focused on duplicating Carplay and AA functionality... Developing software is not a cheap expense.

 

[evguy]

??‍ Well let's put this in context. I see 13.25 after ...hours last April. It was $12 a share. I'm not a financial advisor, but it might be a good time to increase one's position. ?

Yep, buy when others are fearful. Will be tough in the short term, but amidst all the conservative numbers they're still forecasting gross profit by Q4 this year.

 

[Electrified Outdoors]

I hate to see anyone get laid off, but it’s hard to ever say just how much of a sign it is for the company overall. I feel like pretty much any company could lose 10% of salaried workers at any time and be completely fine.

Layoffs are a good opportunity to get rid of "poor performers" with little liability. A good business will have a round of layoffs at least once per year.

 

[ozziegt]

Anyone else considering selling their vehicle? It's starting to give me some anxiety, I don't want to be stuck with an $80k paperweight. Maybe worst case scenario is they get bought out by someone instead of shutting down?

 

[ironpig]

Anyone else considering selling their vehicle? It's starting to give me some anxiety, I don't want to be stuck with an $80k paperweight. Maybe worst case scenario is they get bought out by someone instead of shutting down?

Nope, there have been doom and groomers asking the same question since the first one left the assembly line. They have billions in cash and are opening a 2nd factory. They aren't going anywhere.

 

[R1Tom]

I think it was the right choice to build a new factory but the year long delay with lawsuits probably did more damage to the timing than they would ever admit.

I think if interest rates come down this year and Rivian can do more leasing it will be a decent bridge. And selling the lease returns is a good revenue stream for most automakers I believe. They will be walking a tightrope for sure over these next few years.

Long term it should be right choice, to build a ground up, but a few wild cards.....competition getting their offerings out quicker....and trimming organization to conserve funds until that plant, and any additional delays, get completed and producing sellable R2's....

 

[Golfer04]

https://techcrunch.com/2024/02/21/rivian-lays-off-10-of-workforce-as-ev-pricing-pressure-mounts/amp/

Same news, but what is Peregrine?

Peregrine is the code name for the cost cuts to be achieved during the April, 2024 shut down.

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