The R1T received so much praise for the fantastic product it ended up being that people could never anticipate all the hardship Rivian would endure. To be honest, the whole world is going through the same challenging times. For a company giving its first steps, it is probably even harder, and Rivian’s earnings call will make it even more evident.
The EV maker does not have much to celebrate. Despite the good reviews and prizes the R1T already collected, production numbers would be a factor for disappointment. According to Automotive News, they are way below what they should be, and the explanation is not complex.
After the international health crisis and the semiconductors shortage, the world hoped that things would get back to normal until Vladimir Putin thought it was a good idea to invade Ukraine. The supply disruption caused by this move paralyzed the automotive industry once again, and Rivian was no exception.
Ukraine is a massive wiring harnesses supplier, and Russia produces 40% of all nickel worldwide. Electric vehicles are significantly affected by both situations, and Rivian does not have a production volume that is enough for it to dodge these rising costs with long-term contracts.
To make matters worse, Rivian announced a $12,000 price increase recently that caught reservation holders by surprise. RJ Scaringe tried to fix that by stating these price hikes would not be applied to reservations made as of March 1. If he pleased his early adopters, the Rivian CEO caused the fury of Charles Larry Crews.
This shareholder filed a complaint in the U.S. District Court in San Francisco alleging that the company priced its EVs in a deceiving way before the IPO only to raise the prices shortly after that. That’s something Laura Schwab also accused the company of doing in her lawsuit against Rivian for gender discrimination and retaliation.
All that makes the earnings call that is about to begin in a prelude of a nightmare: Rivian and RJ Scaringe are sure to face tough questions from investors unless they are able to dodge them as Tesla does. The new EV maker has an excellent opportunity to show it follows different standards.
After the international health crisis and the semiconductors shortage, the world hoped that things would get back to normal until Vladimir Putin thought it was a good idea to invade Ukraine. The supply disruption caused by this move paralyzed the automotive industry once again, and Rivian was no exception.
Ukraine is a massive wiring harnesses supplier, and Russia produces 40% of all nickel worldwide. Electric vehicles are significantly affected by both situations, and Rivian does not have a production volume that is enough for it to dodge these rising costs with long-term contracts.
To make matters worse, Rivian announced a $12,000 price increase recently that caught reservation holders by surprise. RJ Scaringe tried to fix that by stating these price hikes would not be applied to reservations made as of March 1. If he pleased his early adopters, the Rivian CEO caused the fury of Charles Larry Crews.
This shareholder filed a complaint in the U.S. District Court in San Francisco alleging that the company priced its EVs in a deceiving way before the IPO only to raise the prices shortly after that. That’s something Laura Schwab also accused the company of doing in her lawsuit against Rivian for gender discrimination and retaliation.
All that makes the earnings call that is about to begin in a prelude of a nightmare: Rivian and RJ Scaringe are sure to face tough questions from investors unless they are able to dodge them as Tesla does. The new EV maker has an excellent opportunity to show it follows different standards.