December 6, 2022

r43dscartex

automotive

Rivian CEO: Parts crunch won’t affect company’s bright future

While parts scarcity has forced Rivian to be hyper-focused on short-term supply chain issues, that hasn’t stopped the startup from moving forward on ambitious plans for a second factory near Atlanta, and expanding vehicle features, including new motor and battery configurations.

Moreover, Rivian’s initial public offering last year has given it the funds to survive and thrive, Scaringe said.

“We’ve fortunately capitalized the business to a level that whether we deliver ‘x’ vehicles or ‘2x’ vehicles this week, that doesn’t have a material impact on our financial viability,” Scaringe said.

Rivian’s stock price has fallen from more than $100 per share at the start of the year to about $40 at the close last week. In March, the company reported a net loss of $2.46 billion in the fourth quarter compared with a loss of $354 million from a year earlier.

The automaker is moving forward with plans to build a new generation of electric motors in-house and to develop a proprietary 800-volt battery architecture. Longer term, Rivian is working on a second platform dubbed R2 for smaller vehicles with more affordable prices.

Parts shortages could potentially delay some aspects of those plans, Scaringe said. But there’s no point in changing course due to temporary bumps in the road.

“If we set our strategy and the things we are working on long-term based on short-term supply blips that we’re feeling today,” Scaringe said, “that would be ludicrous.”