Rivian bets the farm on its new $5 billion plant. But they already lose $40,000 per vehicle sold.

Photo above - A Google search for "worst lifted Rivian" immediately produced this gem. If you can find anything funnier, please post it in your replies.

If you’re like me, you might see (maybe) 1 Rivian truck per week. There’s a guy who has a Rivian at the parking lot where I work. I don’t know what he paid for it, but no matter what it was, he should consider himself a lottery winner. Rivians cost $40,000 more to make than what he paid for it. (see link below)

Rivian has a plan to fix all that. A new $5 Billion plant in Georgia. This probably means a non-unionized workforce, which is the bright spot for this troubled automaker. Although robots might work cheaper and demand no health benefits or pension plan.

Rivian announced plans for this new factory in 2021, right after Biden’s inauguration, amidst giddy excitement over new/expanded/continued EV tax credits. But they’re just breaking ground now, more than 4 years later. The press release on the factory groundbreaking doesn’t go into specifics about the delay. Perhaps profits, or lack of them?

Rivian sold 50,000 vehicles in 2024. This year they plan on selling LESS (40-45,000). I’m guessing that lack of production capacity is not the problem here, since they already produce 20% more in previous years. So why the new factory?

Rivian is possibly anticipating a Gavin Newsom victory in the 2028 presidential election, and restoration of the EV tax credits? That is one huge bet. If you amortize that $5 billion factory over 20 years, and 50,000 vehicles per year, it increases the loss per vehicle by another $5,000 . . . on top of what they’re already losing.

There are at least 2 dozen abandoned auto plants Rivian could have picked up for a song. Presumably these would cost more to renovate than new construction. Or those plants could be in high tax/high crime locations with an unreliable workforce.

Rivian may be hoping that they will own the EV truck market when the dust settles. Ram has completely cancelled their battery pickup truck, and is pivoting to hybrids. Ford cancelled a giant battery factory even before Trump won the election last year. Don’t get me started on the Tesla Cyber Truck.

I don’t wish any misfortune on aspiring Rivian workers from “The Goober State” (peanuts, Georgia’s official state crop. It’s not peaches, despite what you may have heard. Google Jimmy Carter for details).

I don’t wish any misfortune on Rivian investors either. The stock (RIVN) is already down 90% - to $13, from it’s all time high of $130. They’ve suffered enough. If they want to stop their pain and suffering they should possibly vote differently at shareholder meetings?

I’m just sayin’ . . .

It's 'do or die' for electric vehicle maker Rivian as it breaks ground on a $5 billion plant

Rivian Slashes 2025 Sales Forecast By Up To 13%, But Secret Stockpile Could Help | Carscoops

How Much Does Rivian Lose Per Vehicle? A Detailed Breakdown - Accounting Insights

Avectoijesuismoi · 36-40

I have a Rivian RS1 it has many features
Built In air compressor to inflate those inflatable toys for the pool or beach.
It has a two plate fold out induction cooker that plugs into and sits of the tailgate so you can cook, if you get stuck on the freeway in traffic jam you can just get out and cook
breakfast, lunch, etc if you get hungry. It even has lights above it so you can see in the dark.
Built In Bluetooth speaker so you can take the music with you onto the beach etc.
Has a glass roof so you can see the scenery above as you are going along.
Tells me if my pet is comfortable orif the child seat is to hot
Has a whole bunch of camera and other sensors for parking
You can turn the frunk into an ice box to keep the beverages chilled.
It is actually very nice vehicle to drive as well spacious and comfortable works nicely as a mom car.
In reality for what you are getting for your money you are actually getting very good value for the money.
If EV is the way we need to go it is a good option.
To my mind the only things they need to fix a bit is acceleration power from pull off and give it a higher top speed

Avectoijesuismoi · 36-40

@SusanInFlorida It was a bit of a joke but it does have the cooker. Mind you you could almost set up a sort of Take Away/Fast food place right there on the interstate and make a few $$$$. Donald did say we should be innovative and show some entrepreneurial skills and there would be a Golden Age.

SusanInFlorida · 31-35, F

@Avectoijesuismoi i have no desire to interfere with or regulate people's tailgate parties.

but in my personal observation you don't need a $100,000 fully electric off road behemoth to grill some hot dogs and have a beer while attending the Bucs game.