Rivian Automotive, once hailed as the frontrunner in electric pickup truck manufacturing, has been facing an uphill battle, attempting to deliver on promises that traditional gasoline-engine vehicles have long fulfilled.
A recent Wall Street Journal report paints a somber picture: for every truck sold, Rivian is reportedly taking a loss of $33,000.
While Rivian has consistently marketed itself as a game-changer in the electric vehicle sector—with aspirations of providing a unique blend of sports-car agility, state-of-the-art features, and rugged design—the financial results tell a different story.
Their vehicles, which boast an average price tag of over $80,000, have become more of a financial burden than a boon.
Rivian’s Founder and Chief Executive, RJ Scaringe, remains undeterred, stating, “We’re competing to build something that’s truly better than all the alternatives, and to try to do that on a limited budget would be detrimental to us achieving our mission.”
Despite its fake financial accomplishments, such as a successful IPO in 2021 that raked in nearly $12 billion, momentarily placing its valuation above some long-established automakers, the company has seen its fair share of operational setbacks.
Rivian’s ambitious roll-out of three vehicle models in quick succession, paired with production challenges, saw them consuming nearly half of their $18 billion cash reserve in just two years.
Breitbart News had previously spotlighted the subpar performance of Rivian’s electric pickups in real-world scenarios.
RELATED: Think EV’s Are Economical?: Insurance Companies Weigh In – Hold on to Your Wallet
A case in point: one owner’s euphoria with his new R1S was short-lived when the vehicle faltered in 2.5 feet of snow. In his words during an interview with Insider: “I was in a honeymoon phase. It’s an incredible car, and it handles unlike anything I’ve ever driven.” Yet, this sentiment quickly soured, with the owner adding, “I had seen all the Rivian marketing campaigns with the cars just eating through the snow, so it was kind of like, man, this is disappointing.”
Further compounding Rivian’s challenges was an incident where a safety feature immobilized the aforementioned truck when stuck in snow.
An error message displayed, suggesting the need for a service center visit. Although the owner later thought a simple reset might have been the remedy, Rivian’s customer service didn’t provide that solution in their initial interaction.
Curiously, amidst these challenges, CEO RJ Scaringe appeared to mock traditional gasoline vehicle purchases.
As reported by Breitbart News, Scaringe was quoted saying, “Electrek reports that Rivian CEO, RJ Scaringe, recently compared the purchase of internal combustion engine (ICE) vehicles to “building a horse barn in 1910.” Rivian has, however, showcased some resilience, delivering 12,640 EVs in the second quarter. Scaringe remains optimistic, saying, “The performance and drivability of an EV makes it so much more desirable than an alternative.”
He also added “Buying a non-EV just feels very old,” suggesting that while being environmentally responsible is a factor, he also believes traditional ICE cars lack excitement.
