Rivian Stock Slips on EV Changes in Demand, Interest
What’s Happening & Why This Matters
Electric car manufacturer Rivian has decided to lay off 10% of its salaried employees in an effort to reduce costs following a significant loss in the last quarter of 2023. The company, which is backed by Amazon, reported a $1.5 billion loss in the fourth quarter of 2023 and expects to produce 57,000 electric vehicles in 2024, the same number as last year.
Rivian founder and CEO RJ Scaringe stated in an email to employees that the company is facing economic challenges, including high interest rates and geopolitical uncertainty, and needs to make strategic changes to ensure its long-term success. This includes prioritizing areas such as the launch of the Peregrine and R2 models, as well as investing in marketing efforts.
t/f Summary: What’s Next
As part of its cost-cutting measures, Rivian plans to close a factory in Illinois later this year and upgrade its manufacturing line to increase production rates by 30%. Additionally, the company is set to reveal its R2 compact SUV. Expected R2 pricing will be between $40,000 and $60,000. R2 Debut is on March 7 with deliveries scheduled for 2026.