Whatâs Going On Here?Rivian admitted late last week that it wonât hit its production targets for this year, as the electric vehicle (EV) maker realizes how much easier it is to say things than do them⊠What Does This Mean?Hereâs the trouble with never having sold a single EV before this month: Rivian â which raised $12 billion in its initial public offering (IPO) last month â revealed in its first quarterly earnings update that itâs been struggling to produce enough EV batteries. Layer supply chain issues on top, and itâs expecting to fall âa few hundredâ short of the 1,200 EVs it aimed to produce this year. And while the company still thinks it can fulfill its 170,000 existing orders by the end of 2023, it did concede that any new ones would probably get delivered the following year. So itâs all hands on deck: the EV-makerâs been on a hiring spree, and said itâd spend $5 billion on a new plant that could produce 400,000 EVs a year from 2024. Those costs didnât appeal much either: investors initially sent its stock down 10%. Why Should I Care?For markets: Bless âem.
Rivian is still worth more than both General Motors and Ford, mind you. That has to hurt: they made $27 billion and $33 billion in sales respectively last quarter, which is â ⊠carry the one⊠â $27 billion and $33 billion more than Rivian. Analysts reckon itâs because investors expect Rivian to pull a Tesla, but those are some big tire tracks to fill.
The bigger picture: Ford talks to the hand.
If Rivianâs the TikTok star saying itâll be bigger than the Beatles, Ford is the backwards cap-sporting geriatric promising to be BTS: the carmaking stalwart said last week that itâs aiming to eventually overtake Teslaâs EV sales. Take a chill pill: Tesla has already produced well over 600,000 EVs this year, and Fordâs not expecting to get jiggy with that number until 2024. | 