The R1T and R1S Electric Vehicles Project of the Rivian Company of Automobiles: A First Year Earnings Report
“At this point in time, we believe focusing on our consumer business, as well as our existing commercial business, represent the most attractive near-term opportunities to maximize value for Rivian,” Scaringe said.
Rivian believes focusing on their consumer business, as well as their existing commercial business, are the most attractive near-term opportunities to maximize value. The joint venture between Mercedes-Benz and Rivian will build large commercial electric vans.
This comes on the heels of Rivian reporting a $1.71 billion loss in the second quarter of 2022. It will burn through $700 million in cash to produce 25,000 vehicles by the end of the year and it’s still 7,000 EV short. Rivian lay off 800 employees in order to save money and prevent more money from coming in. The R1T electric trucks and R1S SUVs have 98,000 reservations.
The company is also burning through money. It ended September with $13.8 billion in cash, compared to almost $17 billion at the end of March. In the summer it laid off 6% of its workforce.
The E-V Production at the Mercedes-Benz Plant in Jawor, Poland: Implications for Biden’s Inflation Reduction Act
The companies were going to build the vehicles together at a manufacturing site in Poland, but the German automaker isn’t going to pause its own plans. The Mercedes-Benz head of vans said in a statement that the ramp-up plan for their new EV manufacturing site in Jawor, Poland was not affected. “We will continue with full speed and determination to scale up electric vehicle production in our first dedicated electric van plant.”
The head of Mercedes-Benz Vans said that the company will ramp up their electric van production in their first dedicated plant.
Subsidies in US President Joe Biden’s Inflation Reduction Act for car manufacturers who buy US-made components, including EV batteries, are also muddying the investment outlook. Europe believes the act will make it harder for European firms to compete and is concerned that it may divert investment away from the bloc.