Rivian Faces Uncertain Future As Buyers Run Out Of Patience CarBuzz
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These delivery issues aren't drawing as much public attention as they perhaps should be. Instead, Rivian's share price is everywhere. Or rather, its decline is. After its initial product offering (IPO), the brand set off strong with a value north of $70. Now, it's hovering around $25. Since the IPO, Ford and others have dumped Rivian shares, grabbing headlines. But a lack of deliveries is hitting Rivian hard. Without customers' good faith and satisfaction to show to shareholders, things aren't looking good. Rivian Rivian Rivian That said, the second-hand Rivian market is an excellent indicator of demand. Auctions on Cars and Bids have led to R1Ts selling for significantly more than sticker, even after the price adjustments Rivian buyers were so upset about months ago. For now, at least, Rivian remains the hot truckmaker of the moment. However, with the Ford F-150 Lightning on the horizon, it may not stay that way. Scaringe's company has to start delivering orders to customers, simply because Ford will. And if Ford starts making deliveries on a hot product like the Lightning, it's easy to see many R1T buyers switching sides. © 2018 Ben Moon Rivian Rivian
Rivian Faces Uncertain Future As Buyers Run Out Of Patience
May. 25, 2022 4:00 PM ET by Chase Bierenkoven Industry News / 6 Comments Rivian can't stay the truckmaker of the moment for long. The bad times are rolling at Rivian. Rivian owner (and prospective owner) forums are lighting up with complaints about inconsistent delivery timelines and delays. Much of this is a result of shortages at Rivian's expanding network of factories, both in Georgia and at home in Normal, Illinois. The maker of the Rivian R1T announced some time ago it was cutting 2022 production in half. That was followed by CEO RJ Scaringe alleging that favoritism led to a lack of semiconductors. He said that suppliers would rather provide to someone who wasn't cutting their production numbers in light of current circumstances. Now, it appears delays are continuing to mount, and buyers are running out of patience. Rivian Rivian Rivian "Building in few build combinations reduces complexity with our suppliers and in the plant and allows us to build a greater number of vehicles," said Rivian in an email to order-holders. Basically, what Rivian said in that email is that customers who stuck with their initial color choices instead of easier to fulfill options could have their orders further delayed. Despite that, Rivian remains committed to hitting 25,000 units this year.These delivery issues aren't drawing as much public attention as they perhaps should be. Instead, Rivian's share price is everywhere. Or rather, its decline is. After its initial product offering (IPO), the brand set off strong with a value north of $70. Now, it's hovering around $25. Since the IPO, Ford and others have dumped Rivian shares, grabbing headlines. But a lack of deliveries is hitting Rivian hard. Without customers' good faith and satisfaction to show to shareholders, things aren't looking good. Rivian Rivian Rivian That said, the second-hand Rivian market is an excellent indicator of demand. Auctions on Cars and Bids have led to R1Ts selling for significantly more than sticker, even after the price adjustments Rivian buyers were so upset about months ago. For now, at least, Rivian remains the hot truckmaker of the moment. However, with the Ford F-150 Lightning on the horizon, it may not stay that way. Scaringe's company has to start delivering orders to customers, simply because Ford will. And if Ford starts making deliveries on a hot product like the Lightning, it's easy to see many R1T buyers switching sides. © 2018 Ben Moon Rivian Rivian