Back in October, Rivian quietly revealed that it only produces two R1T electric trucks per day. The automaker has slowly ramped up manufacturing, but it’s still far from reaching practical production volume, and pre-orders are growing faster than they can be fulfilled. Not surprisingly, cracks are starting to appear.
The first problem is money. As expected, Rivian has drained cash since 2020, accumulating an additional $1 billion in losses. And while the company has more than 70,000 R1T pre-orders on its board, customers only pay $1,000 refundable Deposit to reserve their car. And that brings us to the second Rivian problem, which is very large; You can’t make cars fast enough.
Once again, Rivian only built two cars per day when it began production of the R1T in October 2021. If the automaker wanted to meet its original list of 55,000 pre-orders by October 2022, it would need to build 150 trucks per day. That’s a small sum for a Ford plant that is driving away gas consumers, but it’s a challenge for a startup building electric vehicles during supply shortages and a pandemic.
We made our first R1S deliveries last week from our plant in Normal, and from IL to RJ and CFO Claire. We are ramping up production over the next few months on our way to mass production. Thanks to our team for all the hard work to make this happen! pic.twitter.com/Ql9Di2ySBE
Rivian December 20 2021
Yes, Rivian is making cars a little faster now. But it has accumulated an additional 20,000 pre-orders, many of which won’t arrive until 2024 or beyond, according to the startup’s CEO. Additionally, all pre-orders for a ‘Max Pack’ R1T configuration, even if it was introduced back in 2018, are being pushed back until 2023 (unless you change the vehicle’s configuration to a smaller battery).
By the looks of it, Rivian expects to produce less than 150 trucks per day (on average) over the next year. The company says it will build a second production plant to speed things up, but the $1,000 deposit doesn’t result in building an electric vehicle plant. This means that Rivian will borrow more Money, getting into debt means taking on more Pre-orders to satisfy lenders and investors — yes, a normal business for a tech startup, but not great for a company struggling with supply chain issues and tough competitors like Tesla or Ford.
There is one part of this story that we cannot hide. Rivian doesn’t just make cars for ordinary people. The automaker has an exclusive deal to build electric delivery trucks for Amazon, and will soon take orders for other commercial vehicles. Rivian’s financial situation is incredibly complex, and the collection of unfulfilled pre-orders is not necessarily Think about the health of the company or its obstacles.