Rivian Layoff 10% Staff and Lowers Production Forecast for 2024

[SRO]

At last check, Rivian was losing $30k per R1. To turn a profit, you need volume to overcome your fixed labor and overhead costs (you'll save a bit on COGS, but not materially so). With the flat production outlook for 2024, it doesn't look good for cash burn. Sure it has Saudi money, but no pockets are infinite.

To me the R2 at $40k - $50k MSRP is a race to the bottom. Rivian has to do it to build (or maintain) topline for investors and shareholders, but a race to the bottom nonetheless. The company is simply too young and inefficient, and by shifting from 1st gear to 5th so quickly, it will eventually stall out. If they are losing $30k on an $80k - $100k MSRP, their loss on the R2 could easily be double. It's a tough spot for sure.

I keep thinking that Tesla never made a profit until they made a less expensive car. Then they broke out. I hope Rivian can get there. The problem is Tesla had less competition at that point. Fingers crossed.

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[LetsgoRIVN]

Down 17.5% an hour before open.

Daaaiiiimmmnn!

Disaster for shareholders and I blame RJ for misleading and lying.

 

[jjswan33]

Disaster for shareholders and I blame RJ for misleading and lying.

If he really misled and lied then you should prepare a lawsuit as that would be illegal…. good luck.

 

[kurtlikevonnegut]

Disaster for shareholders and I blame RJ for misleading and lying.

What specifically did RJ lie about?

To be clear, something that was true when it is said and is no longer true is not a lie.

 

[emoore]

At last check, Rivian was losing $30k per R1. To turn a profit, you need volume to overcome your fixed labor and overhead costs (you'll save a bit on COGS, but not materially so). With the flat production outlook for 2024, it doesn't look good for cash burn. Sure it has Saudi money, but no pockets are infinite.

To me the R2 at $40k - $50k MSRP is a race to the bottom. Rivian has to do it to build (or maintain) topline for investors and shareholders, but a race to the bottom nonetheless. The company is simply too young and inefficient, and by shifting from 1st gear to 5th so quickly, it will eventually stall out. If they are losing $30k on an $80k - $100k MSRP, their loss on the R2 could easily be double. It's a tough spot for sure.

Rivian doesn’t have Saudi money.

 

[Count Orlok]

In other news, The Count has ordered a R1T.

 

[MidnightRivian]

In other news, The Count has ordered a R1T.

Will The Count put $100 down on the R2 and take delivery?

 

[LetsgoRIVN]

the price just hit ATL!

 

[ToughMudderGirl]

I think it didn’t help that Elon once again was talking trash about Rivian and Lucid, and there’s actual people who listen to him as though he’s business savvy. ?
I strongly believe that Rivian and Lucid provide far superior vehicles for their customers who want safety and luxury. Tesla has had so many problems and released cars that they knew had serious issues because Elon has ignored engineers’ warnings.

I am hopeful that the public will wake up and realize that the R1S and R1T are definitely worth every penny.

 

[emoore]

the price just hit ATL!

So you signed up here just to bash Rivian and the stock price? Cool.

 

[Dark-Fx]

Why would Rivian not come up with and offer an accessory battery pack that could slide in the gear tunnel and add another 150 miles of range give or take to help sale those on the fence that need towing and have range anxiety ? This could be a high profit accessory that customers would be willing to pay to have peace of mind.

Is this a serious question? Rivian's payload capacities are too low for this.

 

[Dark-Fx]

Rivian doesn’t have Saudi money.

ALJ invested in Rivian in 2018. They were the third biggest investor. It's far from a controlling interest, unlike Lucid's Saudi investors.

 

[emoore]

ALJ invested in Rivian in 2018. They were the third biggest investor. It's far from a controlling interest, unlike Lucid's Saudi investors.

Didn't know that, thanks. I was thinking of Lucid which is basically controlled buy Saudi money.

 

[1T2022]

I just chased the RIVN stock from $12.00 all the way down to $11.45. Got to dig myself out.
It has risk but it's the only way I know.

 

[LetsgoRIVN]

So you signed up here just to bash Rivian and the stock price? Cool.

Nope I am a long term shareholder but he is frustrating. Check this out

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