After a brief recovery in July, Rivian’s (NASDAQ: RIVN) stock collapsed again and went down 42% for the year while the market was 19% higher. Its problems are the same ones it has had since its founding: It is too small to factor in what has become a problematic EV market, and its losses are stupendous.
What’s happened recently?
Rivian had a fire on one of the lots where they store their vehicles. The cause is under investigation.
Rivan recently stopped production at one of its plants. The plant makes trucks for major partner Amazon. The reason given was a shortage of parts. Amazon owns 16% of Rivan’s inventory, and its total order for Rivian vehicles could hit 100,000.
Rivian’s production chief, Tim Fallon, quit and went to Jeep, weakening Rivian’s management structure. He will lead Jeep’s EV business, which competes with Rivian.
Next, Rivian had a challenging second quarter. Vehicle production was only 9,616, a staggeringly small number.
Finally, the company lost $1.5 billion in the most recent quarter, adding to its string of billion-dollar loss quarters.
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