Despite posting more than $3 billion in losses in the first half of the year, some remain optimistic about Rivian’s future.
The electric vehicle manufacturer is continuing to invest in its Twin Cities manufacturing facility, including a new wind turbine that was recently approved by the Normal Town Council in July.
The company recently restructured and reduced costs, including the elimination of some non-manufacturing jobs in Central Illinois. Despite ongoing supply chain issues, ISU Economics Professor George Waters believes the company is poised for a rebound.
“They still have that big Amazon order, so if they can get their production going, they should be fine,” Waters said. Rivian and Amazon collaborated on a new shipment of electric delivery vans. Rivian’s primary focus, according to a letter to stockholders, is ramping up production.
“The demonstrated production rates within our production facility continue to give us confidence in the systems, equipment, and team members’ ability to ramp the production lines in our Normal Factory,” the company said in a quarterly letter to shareholders. “However, we believe that supply chain constraints will continue to be our production’s limiting factor.” Rivian has a high chance of success due to their market differentiation, product features, financial backing, early market entry, and strong leadership. With the R1S and R1T on the horizon, all eyes are on Rivian as they enter the EV world and try to stake their claim in the electric vehicle revolution. While the EV space continues to see increased competition, Rivian appears to have all of the key success factors in place to rock the automotive industry.