What part is Rivian missing that's causing supply / production issues?

[dradam]

Dropping production estimates for Q4 because of "supply issues" on a shared part for R1 and RCV . Just curious to know if anyone knows what the shared part is ?

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[Hereforthesnacks]

A CEO who knows what he’s doing.

 

[DuoRivian]

A CEO who knows what he’s doing.

I think that is unfair. But it is true with the 2025 models they had simplified and strengthened the supply chain so something has gone wrong.

 

[Hereforthesnacks]

I think that is unfair. But it is true with the 2025 models they had simplified and strengthened the supply chain so something has gone wrong.

I think it’s tough, but fair. And said in a jerky way lol. But it’s how I feel based on a couple years of data and decision making.

 

[Donald Stanfield]

I think it’s tough, but fair. And said in a jerky way lol. But it’s how I feel based on a couple years of data and decision making.

Not at all fair. Rivian has made some pretty good strategic decisions and compared to other startup and even legacy automakers RJ is towards the top when decisions are concerned. I think you either don't have the "data" you think you do or are interpreting it incorrectly.

 

[Hereforthesnacks]

Not at all fair. Rivian has made some pretty good strategic decisions and compared to other startup and even legacy automakers RJ is towards the top when decisions are concerned. I think you either don't have the "data" you think you do or are interpreting it incorrectly.

Seriously? He started building a plant everyone said was a bad idea and then bailed on it. He also spent $$ on an R1 refresh no one asked for. And he failed to invest quickly in service centers 2 years ago when folks said that was where the $$ should go. He can’t get consistent quality. Stock is down 90%+.

Why be so beholden to this guy? Because he designed oval headlights?

(appreciate your point of view)

 

[DaveA]

Missing quality control maybe?

 

[RWerksman]

Seriously? He started building a plant everyone said was a bad idea and then bailed on it. He also spent $$ on an R1 refresh no one asked for. And he failed to invest quickly in service centers 2 years ago when folks said that was where the $$ should go. He can’t get consistent quality. Stock is down 90%+.

Why be so beholden to this guy? Because he designed oval headlights?

Not defending his actions, but the refresh was a cost cutting measure designed to increase per-unit profitability. It was spun as an enhanced refresh that was muh betta, but that wasn't the primary purpose.

From what I've read, it componentry of the new motors causing the issue. Realistically, I think they underestimated the downturn based on the increased Gen 2 pricing, and they should have known better by now.

 

[Hereforthesnacks]

Not defending his actions, but the refresh was a cost cutting measure designed to increase per-unit profitability. It was spun as an enhanced refresh that was muh betta, but that wasn't the primary purpose.

From what I've read, it componentry of the new motors causing the issue. Realistically, I think they underestimated the downturn based on the increased Gen 2 pricing, and they should have known better by now.

Good point re: refresh reducing cost.

 

[Ngkgb]

Customers….

 

[Donald Stanfield]

Seriously? He started building a plant everyone said was a bad idea and then bailed on it. He also spent $$ on an R1 refresh no one asked for. And he failed to invest quickly in service centers 2 years ago when folks said that was where the $$ should go. He can’t get consistent quality. Stock is down 90%+.

Why be so beholden to this guy? Because he designed oval headlights?

(appreciate your point of view)

Those are your earth-shattering revelations that lead you to the conclusion RJ is incompetent? It's easy to look back with all the current information and criticize some of these decisions. The macro economic climate is the biggest factor in where Rivian, and all other EV manufacturers are right now. Persistent inflation has tampered EV enthusiasm which has softened demand across the board.

Can you name one other EV manufacturer that's significantly outperforming Rivian right now? The truth is, the entire industry is facing challenges. The roll out for GM, a legacy manufacturer, has been notably difficult, and even Tesla has been feeling the strain. It's the greater economy and consumer sentiment that's a headwind right now. EVs were a bubble during the last surge, and now demand is much more organic.

Next, the R1 refresh was about something other than satisfying customer demand; it was about making a more cost-efficient vehicle. Rivian condensed parts and wiring, making each R1 more profitable with the refresh. Service centers have been opened about as quickly as possible, considering the permitting and staffing problems at every location. You act as though there aren't hundreds of job postings for techs and service people right now and Rivian is just sitting on empty, permitted buildings and people sitting there waiting to work.

Ever manage employees? Do you know how hard it is to build an international network of service centers? The fact that as many exist now as they do is evidence of a well run company.

 

[Golfer04]

Not defending his actions, but the refresh was a cost cutting measure designed to increase per-unit profitability. It was spun as an enhanced refresh that was muh betta, but that wasn't the primary purpose.

From what I've read, it componentry of the new motors causing the issue. Realistically, I think they underestimated the downturn based on the increased Gen 2 pricing, and they should have known better by now.

I have 38 years experience financing commercial businesses including public traded companies and too many start ups to count. Rare is the person who can both design the widget and then successfully run the company (Musk is an idiot, but the definite exception). If we were in the lender group we would be looking to exit. I love both my trucks, but there are too many errors to ignore. The hand picked board of directors is negligent and not holding him accountable. Rumor is the last CFO left over a conflict with RJ regarding CAPEX spending (he wanted more service centers & no 2nd plant). Plain and simply you can't a plant at 30 to 40 percent of capacity and ever be profitable.

Just my opinion, but if they would change the advertising from the "feel good" stuff to actual benefits of ownership it might help. When the Ford Rivian board member left CNBC asked him what Ford learned from being on the board he said "we learned EVs aren't going to win because of the environment. They are going to win because they are better vehicles, and they are easier to own". The advertising should focus that direction. Currently it tries to convince people who already are convinced.

Sorry for the rant?‍, but I live close to Normal and heard about the supplier issue several weeks ago. The fat lady is definitely warming up her vocal cords on Rivian. Let's hope R2 can come to market way early and/or a dedicated buyer emerges.

 

[Supratachophobia]

Not defending his actions, but the refresh was a cost cutting measure designed to increase per-unit profitability. It was spun as an enhanced refresh that was muh betta, but that wasn't the primary purpose.

From what I've read, it componentry of the new motors causing the issue. Realistically, I think they underestimated the downturn based on the increased Gen 2 pricing, and they should have known better by now.

The refresh was the car they originally wanted to start with, but couldn't because the motors weren't ready. G1 was always a stop gap and gen2 was always going to happen, both got r2/3 sake and long term part cost.

 

[Hereforthesnacks]

Those are your earth-shattering revelations that lead you to the conclusion RJ is incompetent? It's easy to look back with all the current information and criticize some of these decisions. The macro economic climate is the biggest factor in where Rivian, and all other EV manufacturers are right now. Persistent inflation has tampered EV enthusiasm which has softened demand across the board.

Can you name one other EV manufacturer that's significantly outperforming Rivian right now? The truth is, the entire industry is facing challenges. The roll out for GM, a legacy manufacturer, has been notably difficult, and even Tesla has been feeling the strain. It's the greater economy and consumer sentiment that's a headwind right now. EVs were a bubble during the last surge, and now demand is much more organic.

Next, the R1 refresh was about something other than satisfying customer demand; it was about making a more cost-efficient vehicle. Rivian condensed parts and wiring, making each R1 more profitable with the refresh. Service centers have been opened about as quickly as possible, considering the permitting and staffing problems at every location. You act as though there aren't hundreds of job postings for techs and service people right now and Rivian is just sitting on empty, permitted buildings and people sitting there waiting to work.

Ever manage employees? Do you know how hard it is to build an international network of service centers? The fact that as many exist now as they do is evidence of a well run company.

My earth shattering revelation that he is not good at his job is that his company is failing.

Tesla is outperforming. Even Lucid is out performing. Polestar is outperforming. I won’t even get into the China made cars (not too fair a comparison).

 

[racekarl]

Rare is the person who can both design the widget and then successfully run the company (Musk is an idiot, but the definite exception).

Not to derail this too much, but I think your original point holds, since Musk did not "design the widget" for anything except maybe PayPal.

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