Summary
This document provides some current news and information about Rivian, an electric automobile manufacturer that was founded by R.J. Scaringe in 2009.
Below is some commentary followed by recent news and reports from influencers. For last year’s report, see Rivian News 2023.
What is a Rivian?
The Rivian R1S looks like a typical three-row SUV. However, it includes some features and amenities not found in a typical SUV. It is more capable for off-road driving. There is a camping mode that allows leveling of the vehicle — helpful for cooking and when planning to use a roof-top tent. It’s generally considered a more polished, better equipped, whimsical vehicle that some people are willing to pay a premium for. A video was made from 2021 describing the 7,700 mile TransAmerica Trail drive with Rivian that was the first for an electric vehicle. [View] Other similar trips were documented showing the off-road capabilities of the Rivian, such as the 13,000 all-electric journey southernmost tip of Patagonia up to Los Angeles. [View]
The Rivian Miracle
There is possibly no other product or company in history with as much support as Rivian. Despite the stock dropping from about $80 to about $14 per share, and the founder selling off millions of his own shares, investors are putting billions into Rivian and customers have made deposits for vehicles not expected until 2026. The customer community is very strong and engaged, with hundreds or thousands of hours of videos being produced covering every aspect of Rivian ownership.
Viability
The long-term Rivian business journey is either going to be an inspiring come back story or a very good learning opportunity that will benefit others.
If Rivian manages to achieve profitability heading into 2025, and then release their lower cost R2 model in 2026 as promised, and the R3 vehicle as a profitable car for the masses, it could become a popular domestic brand.
The Car for Everybody?
Rivian’s initial offerings were way beyond most people’s budget. However, the R2 due out in 2026, and lower priced R3 are expected to be more accessible. The recent partnership with VW, and the R3 announcement earlier in the year, focus on an EV similar to the VW Rabbit design, with popularity potential of the VW Bug. Rivian could be sitting on the next VW bug. A popular small reliable car for everybody with potential sales in the millions.
Rivian as an Outdoor Outfitter
Rivian could be described as an outdoor outfitter company for adventurers, hikers, and campers — similar to REI — except with Rivian their flagship products are vehicles. They have a growing list of outdoor and camping gear.
Three Perspectives
Rivian can be understood from three perspectives.
- Investor — From the investor perspective, if you purchased $78 million in Rivian stock on 9 Nov 2021 during the company’s initial public offering, you would now have about $14 million — based on an initial purchase of one million shares.
- By April 2022, it was reported that Amazon lost about 7.6 billion as a result of the ongoing decline in the value of Rivian stock.
- In February 2024, it was reported that Amazon lost about $1 billion in a single week as the stock continued to decline in value.
- In June 2024, it was reported that VW committed to invest $5 billion in Rivian. This resulted in a 23% one-day gain.
- In July 2024, it was reported that the Rivian Founder and CEO sold over $3.6 million of his own shares in the company.
- Manufacturer — As a manufacturer, Rivian is losing about $39,000 per vehicle sold. While the goal is to eventually make a profit, the current business practice is to sell vehicles at $39,000 below cost.
- In April 2024, it was reported that “Rivian shut down its plant at Normal, Illinois for three weeks” to make changes “including simplifying processes and removing equipment at the facility, as well as eliminating over 500 parts from the vehicles in an effort to make them cheaper to build.” [Source]
- In June 2024, it was reported that “material cost for its less expensive and smaller R2 vehicles will be 45% lower than its flagship R1 vehicles.”
- Customer — For customers purchasing Rivian vehicles, there seems to be value in buying something at about $40,000 less than what it cost to make. However, for most people needing a basic vehicle, the cost of a Rivian, at $73,000 to $100,000, many appealing EV alternatives exist at a price of $30,000 to $40,000, and non electric vehicles are priced at about $23,000 new. Quality traditional used vehicles can be purchased for under $10,000. A person wanting basic transportation needs to consider the full range of options.
Travel Kitchen
In 2021, Rivian announced a $6,500 camp kitchen that would stow away in the pass through storage area between the cab and truck bed. [Source: Tech Crunch, Sep 2021] This option reinforced the outdoor adventure and camping aspects of the brand. [Product Video]
On 15 Aug 2024, Rivian announced a smaller camp kitchen at a cost of $1,400 that includes a two element induction cooktop and a carry case. [Source: Tech Crunch, Aug 2024] The original travel kitchen had a small RV style sink. The new model does not. It does have a cutting board, a utensil tray, and a string of festive LED lights.
Because a two-element induction cooktop can be purchased on Amazon for about $200 or less, one may wonder why the cost of the Rivian camp kitchen is $1,400. Apple products are a similar example of high priced products desired because of their design and prestige.
Much of the appeal of Rivian is due to the company’s ability to “sell the sizzle” of their products and brand lifestyle, as seen in their new travel kitchen product launch video below.
The video makes you want to be at that place, eating that food, and hanging out with those cool people. The travel kitchen and truck are really secondary to the overall message.
Rivian Appeal
What would cause numerous investors to risk losing millions or billions of dollars on a stock that seems to be gradually losing value?
What would cause auto buyers to get on wait lists to purchase a car that costs significantly more than other available models?
As Rivian CEO, R.J. Scaringe sets the tone for the company as an innovator and people above profits company. The video below from 27 Jun 2024 is an example. [Source]
Another example of Rivian’s appeal and R.J. Scaringe’s approach to setting priorities is the interview below that he and his son had with two young podcasters in Sep 2024.
The podcasters above have 245 subscribers for their channel. That episode accumulated about 13,000 views a year later. There would be many other influencers with millions of subscribers who would have offered a better audience. Yet, R.J. chose to these young guys, once again demonstrating a choice of people over profits.
Disclosure
In June 2024, after seeing the podcast video above, I decided to purchase one share of Rivian stock for about $14. In August after multiple reports of further investor losses, I purchased another share for a total of about $30 invested in the company. To me, these aren’t investments. These are votes of support for the spirit of the company. Despite having an interest in the company, I feel I can report honestly.
Brand Bias Challenges
There seem to be situations where the Rivian is unnecessarily singled out or given and unfair focus that might tarnish public perception of the brand.
For example, a Rivian truck was prominently featured in a video about the dangers of EVs. The Rivian was repeatedly shown smashing into highway dividers. The title of the report was: “Tests show electric vehicles may pose safety threat to U.S. roads.” [View]
In a Consumer Reports video about the five worst car brands, the Rivian was the featured vehicle for the video promotion image shown below. [Source] In the report, the Rivian is actually the best vehicle on the list.
There are many influencers who have posted long-term Rivian ownership reviews. They are honest reviews that offer some criticism of the vehicles, but mostly constructive suggestions for improvement. The Consumer Reports video only discloses a single report from one Rivian owner who had seemingly an uncommon experience of the vehicle being “bricked” after three weeks. No additional information was offered as to how it became unusable or what the company response was. This lack of transparency incorrectly implies that it’s common to get one of the Rivian vehicles and have it be no longer usable after three weeks.
News
News reports are provided below in chronological order with the most recent at the top.
Information about similar vehicles from other manufacturers is provided for context, and to indicate what products exist on the market that Rivian needs to consider.
Kelley Blue Book (15 Aug 2024)
“2024 Chevrolet Equinox EV” — The 2024 Chevrolet Equinox EV is an all-new, all-electric compact SUV from Chevy, let’s take a look inside! [Source]
- Note: A vehicle like the Chevy Equinox EV would be a similarly sized SUV comparable to the Rivian R2 on the surface. The Rivian vehicles have some impressive technology and robust maneuverability off-road. However, for the “around town” driver, a basic front-wheel drive EV could serve well.
Out of Spec Reviews (25 Jul 2024)
“New Rivian R1S Base Model Highway Range Test! LFP Standard Driven At 70-MPH Constant” — Jordan takes the NEW Rivian R1S Dual Motor Standard Range with LFP battery on our standardized 70 mph range test, with impressive results! [Source]
EV for ME (21 Jul 2024)
“Rivian Chargers Freeport Maine – up and running!” — The Rivian Adventure Network (RAN) has made it to the state of Maine. These are some of the best chargers, currently only open to Rivian vehicles but will open to other vehicles soon. I try them out for the first time and discuss the two new locations that just opened here in both Freeport and Kittery. [Source]
Forbes (28 Jun 2024)
“Volkswagen And Rivian Team Up To Rival Tesla” — The partnership between the young California EV maker and a global auto giant may position both to better compete with Tesla and Chinese rivals. [Source]
CNET (13 Jun 2024)
“Rivian Off-Roading and Drag Racing: Test Drives With the R1T and R1S Gen 2” — We take Rivian’s second-generation R1T pickup and R1S SUV from the cold, muddy trail to a hot drag strip to test their improved performance and, along the way, check their all-new EV architecture and dashboard tech. [Source]
CNET (6 Jun 2024)
“Exclusive Look Inside Rivian’s EV Test Lab (New R1S)” — Join us for an exclusive tour of Rivian’s Palo Alto, California, lab, as the company launches the second generation of its R1S and R1T vehicles. Take a look inside Rivian’s electrical hardware lab, see how engineers test hardware and software in a lab car, and then come for a drive-along in the new R1S. [Source]
Kelley Blue Book (6 Jun 2024)
“2025 Rivian R1T + R1S | First Drive” — Rivian makes updates to their R1T and R1S models but is it enough to pursue consumers to go all-electric? Watch Brian’s first drive and find out! [Source]
Tom Voelk (21 May 2024)
“Rivian R2 and R3 Are the Next Big Thing in Smaller EVs” — Love the Rivian look but find the R1S too large (or expensive)? The two-row R2 and even smaller R3 will right those wrongs. Rivian stopped by Seattle’s University Village store to show off the upcoming R2 and sporty R3X. Expected sometime in 2026 with a range of at least 300 miles, the R2 has the luxury and features of R1S in a tidier package. R3X is for those looking for something even smaller but want the clever Rivian touches. Tom Voelk previews the R2 and R3X with the help of Rivian’s Kenneth Tsang. [Source]
Bloomberg (8 May 2024)
“Rivian CEO Won’t Reveal Order Numbers for the R2” — Rivian Automotive CEO RJ Scaringe wouldn’t say how many R2 models have been reserved by customers. He does say they’re working hard to get the compact SUVs to market. The company reported a wider-than-expected loss in the first quarter. He speaks on “Bloomberg Markets.” [Source]
Out of Spec Reviews (7 Apr 2024)
“Rivian R2 Full Tour! Interior + Exterior Detailed Look, NACS Port, Software, & R1S Size Comparison” — Kyle and Alyssa review the design intent prototype of the Rivian R2! They explore the interior and exterior dimensions, styling, and materials. They also look into the software with the new scroll wheels on the new steering wheel, discuss the NACS port, quick chat with RJ Scaringe, and also a quick preview of R3 and R3X. [Source]
Top Gear (7 Mar 2024)
“FIRST LOOK: Rivian R2 (and R3!) | $45k Tesla Model Y Slayer” — Not one, not two, but three new Rivian electric crossovers have just been unveiled. Up first (and expected) is the R2, a shrunken follow-up to the full-size R1T and R1S that originally launched the Rivian brand. It’s the first vehicle on their new ‘mid-size’ platform, so think of it as Rivian’s Tesla Model Y rival. It’ll come in single-, dual- and tri-motor forms, with pricing from around $45,000 when deliveries kick off in the first half of 2026. It’ll eventually make its way to Europe, too. The surprises at the launch event in California, USA were the R3 and R3X. Also built on the new platform, they’re smaller again than the R2 and are more akin to raised-up hatchbacks. We won’t see them until at least 2027, but the R3 should come in under $40,000, while the R3X is the performance version, with a tri-motor set-up for 0-62mph in under three seconds. It’s a lot to take in, not least for Top Gear Magazine’s editor-in-chief, Jack Rix, who got a sneak peek of the R2, R3 and R3X ahead of the official unveil. Join him for a breathless tour of what lies ahead for Rivian. [Source]
Forbes (20 Feb 2024)
“Why Rivian Wants To Compete In The EV Mass Market With A Lower Priced Vehicle” — Rivian is best known for its EV trucks and SUV’s that come with a higher price tag in the $80,000 range. But with sales of costlier electric cars cooling, Rivian’s CEO RJ Scaringe is attempting to woo consumers with a new smaller SUV with an approximately $45,000 price tag. Senior Editor Alan Ohnsman, who covers future mobility at Forbes, recently sat down with Scaringe to hear more about this new model and why the brand is offering a more affordable unit in 2024. [Source]