Photo: Todd Crawford on Facebook
The American EV maker is ready to face its shareholders. It provided them with a letter signed by the founder and CEO Robert Scaringe, which contains a lot of interesting stuff. Rivian expects to keep burning the cash it has. But there are good reasons for it. Here are the automaker’s plans.
In the letter published by the U.S. Securities and Exchange Commission (SEC), Rivian’s boss is assuring investors that short-term market sentiment is not impacting the advantages the company has and its strategic position as an all-electric premium truck maker. According to the document, there is still almost $17 billion in cash available for the plans set in place for the next two years and beyond.
Investors are informed that the entire auto industry is still finding itself at the beginning of a major shift. The good thing, according to Scaringe, is that people’s mindsets have been modified. A lot more believe now in the zero-emission solution, and Rivian can bet on this to make itself one of the key players in this space.
The executive recognizes that some problems persist, and the geopolitical landscape will impact how car companies are doing business. He touches on the fact that parts sourcing remains a challenge, while energy supply is making things more complicated. Still, Scaringe is convinced there’s a bright light at the end of the tunnel.
Besides being hopeful, Rivian’s CEO also says the company will continue to expand its products and services. FleetOS, for example, will be a software-as-a-service platform that’ll help other companies reduce their shipping and fleet management costs. It has not been made available to the public yet, but there’s work being done in this department.
However, Rivian’s not giving up on its ambition to become “one of the largest companies in the world.” This might help some shareholders with their anxiety since the stock price is continuing a downturn. Sitting at almost $29 per share at the time of writing, the EV truck maker lost $100 for each of the 135,000,000 shares that were part of the last year’s initial public offering (IPO).
Rivian continues to believe in the direct selling process, even if some states are trying to quash auto companies from doing so. The American truck maker is also ready to go all-in on the charging infrastructure with the development of the Rivian Adventure Network that’ll have fast chargers.
Even though there are plans to spend the cash wisely, Rivian is also telling shareholders and prospective investors that the future of the zero-emission vehicles might be unexpectedly tied to battery production capacity. There’s no mention of how the sourcing of the right metals for the chemistry currently in use will be done, but Scaringe says they are “focused on building partnerships with cell providers and upstream pre-cursor material suppliers.” These new and incoming partners are not named, but Rivian will enjoy their help in addition to what they’re doing internally.
At the end of the day, Rivian still wants to ramp up production and satisfy customers that have pre-orders in place since 2018 or 2019. There’s also an eye set on going global, even though the first R1Ts outside the U.S. have been seen in Kenya. The pickups have also been recently joined by an R1S.
Now investors must look at this letter and believe that Rivian will strive to achieve what they’ve set as goals in a market that’s currently trying to squeeze every dollar possible from any department that’s ready to cut costs or even workforce.
Investors are informed that the entire auto industry is still finding itself at the beginning of a major shift. The good thing, according to Scaringe, is that people’s mindsets have been modified. A lot more believe now in the zero-emission solution, and Rivian can bet on this to make itself one of the key players in this space.
The executive recognizes that some problems persist, and the geopolitical landscape will impact how car companies are doing business. He touches on the fact that parts sourcing remains a challenge, while energy supply is making things more complicated. Still, Scaringe is convinced there’s a bright light at the end of the tunnel.
Besides being hopeful, Rivian’s CEO also says the company will continue to expand its products and services. FleetOS, for example, will be a software-as-a-service platform that’ll help other companies reduce their shipping and fleet management costs. It has not been made available to the public yet, but there’s work being done in this department.
However, Rivian’s not giving up on its ambition to become “one of the largest companies in the world.” This might help some shareholders with their anxiety since the stock price is continuing a downturn. Sitting at almost $29 per share at the time of writing, the EV truck maker lost $100 for each of the 135,000,000 shares that were part of the last year’s initial public offering (IPO).
Rivian continues to believe in the direct selling process, even if some states are trying to quash auto companies from doing so. The American truck maker is also ready to go all-in on the charging infrastructure with the development of the Rivian Adventure Network that’ll have fast chargers.
Even though there are plans to spend the cash wisely, Rivian is also telling shareholders and prospective investors that the future of the zero-emission vehicles might be unexpectedly tied to battery production capacity. There’s no mention of how the sourcing of the right metals for the chemistry currently in use will be done, but Scaringe says they are “focused on building partnerships with cell providers and upstream pre-cursor material suppliers.” These new and incoming partners are not named, but Rivian will enjoy their help in addition to what they’re doing internally.
At the end of the day, Rivian still wants to ramp up production and satisfy customers that have pre-orders in place since 2018 or 2019. There’s also an eye set on going global, even though the first R1Ts outside the U.S. have been seen in Kenya. The pickups have also been recently joined by an R1S.
Now investors must look at this letter and believe that Rivian will strive to achieve what they’ve set as goals in a market that’s currently trying to squeeze every dollar possible from any department that’s ready to cut costs or even workforce.
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