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Rivian Deliveries Pushed to 2022

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Rivian has started notifying customers that they will need to wait a bit longer to receive their vehicles.

Rivian has sent notifications that lay out delivery windows for the “Launch Edition” that range from March to September. It’s reasonable to assume that the company’s less-pricey “Adventure” and “Explore” packages will also be pushed to the second half of 2022.

While Rivian has started production of its all-electric R1T pickup, few have been delivered. The R1S SUV was expected to go into production next month, but it is not clear if that will be the case.

Rivian currently operates a single factory in Normal, Illinois and is reportedly looking for a second factory location. 

Early reviews of the R1T pickup have been strong. And investors have been supportive, as the company’s recent IPO gave it a market capitalization of $100 billion.

 
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His price wasn’t locked it. It clearly stated when placing a preorder that prices, configurations, and delivery timeline were all subject to change.

Still doesn’t make the pill any easier to swallow
The reason he thought he was in the clear is because he finalized his config and put down a deposit beyond just the pre-order. Didn’t work out that way. Turns out they still raised it on him… along with everyone.

Rivian owners are like:

 
The reason he thought he was in the clear is because he finalized his config and put down a deposit beyond just the pre-order. Didn’t work out that way. Turns out they still raised it on him… along with everyone.

Rivian owners are like:

Your buddy is full of *sugar*. Preorder was $1k. Was clear that it didn’t hold price. Nowhere has it been possible to put more money down on the vehicle to lock in price.

Furthermore, orders that are in progress ( being built) are not affected by the price increase .
 
Has Tesla raised their prices in the past on reservation holders?

I put in my reservation on the Model Y on Nov. 4th. Nov. 5th, Tesla raised the price $1,000, and eight days later, another $1,000.

But being I had a reservation; they honored the price it was at when I put down my reservation.

Does anyone know of a situation where someone had a deposit down on a Tesla, and Tesla raised the price afterwards?

Just wondering....
Yeah, Model S and X refresh. People who ordered before the refresh we're told to pay anywhere upward of about $8K US to keep their order. Since then, 6 seaters were an at cost item for the purpose of getting a delivery sooner that never happened.
 
Really sad and frustrating seeing this.

Lordstown, Nikola, Canoo, all scams or likely to never make it to market.

Lucid has even lower production than Rivian and even higher prices.

Rivian at least has the Amazon business to fall back on. Maybe they will come out of this.
 
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Honestly the worlds changed since rivian first showed off the initial pricing, but doing this in one lump and to people who already have deposits in is not the best execution
IMO this isn’t about what happened 3 years ago.

Rivian was pimping this truck hard back in the summer of 2021 and all the way up to their IPO. There was a huge media blitz with every major journal talking up this truck and these prices. Tesla removed their pricing more than a year before deliveries. While Tesla’s policy is not good, it’s better than what Rivian is doing here.

What’s happened in the 6 months between then and now? Rivian IPOed, collected billions from investors on the back of numbers they almost certainly knew they couldn’t sustain.

If they’d announced this 3 months ago, would they have had 70,000 orders on the books for their IPO?

Everything Rivian’s management has done has been gaming the system to pimp the IPO price, then to prop up the stock price as long as possible post IPO. I think Rivian is going to be facing a massive shareholder lawsuit in the near future.
 
This all feels very sketchy to me.

Provided Rivian actually needs the extra cash per unit just to break event it would cost, what, $1.5B to make up the difference on existing orders? They just tanked their valuation several multiples of that. They have investors with deep pockets who could have stepped in to get them through the advertised price points on existing reservation holders.

Current reservations would almost certainly have dealt with a few increases on options or mandatory high-margin option groups to ease the pain.

So this company with relatively deep pockets just torpedoed their valuation to save a comparatively small amount of money. They did this while simultaneously pissing off tens of thousands of enthusiastic well-heeled early adopters? For inflation and supply chain? I dunno…

This has a whiff of fraud to me. I’m not an investor (in anything) so my opinions are pretty useless but if Rivian doesn’t have a trajectory toward solvency at these price points it’s curious.
 
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This all feels very sketchy to me.

Provided Rivian actually needs the extra cash per unit just to break event it would cost, what, $1.5B to make up the difference on existing orders? They just tanked their valuation several multiples of that. They have investors with deep pockets who could have stepped in to get them through the advertised price points on existing reservation holders.
Yes, it is super sketchy.

But Rivian is already burning cash at an absurd rate. Right now their operating expenses are about 40% of Tesla’s while they are producing less than 1% of the vehicles to spread those costs across. Adding losses due to negative margins would only increase that burn rate. The only way they get to positive cash flow is by producing enough trucks at a profit. If they lose money for each truck, that isn’t possible.

Their deep pockets investors are ready to cash out. Ford needs cash. Amazon isn’t going to keep funding consumer products which are getting produced instead of their delivery vans.

Rivian was never a good investment for retail investors. It was priced for sky high results based on an elaborate months-long dog-and-pony show their management team put together. Finding new investors at this point would mean massive dilution, screwing over retail investors more.
 
Yes, it is super sketchy.

But Rivian is already burning cash at an absurd rate. Right now their operating expenses are about 40% of Tesla’s while they are producing less than 1% of the vehicles to spread those costs across. Adding losses due to negative margins would only increase that burn rate. The only way they get to positive cash flow is by producing enough trucks at a profit. If they lose money for each truck, that isn’t possible.

Their deep pockets investors are ready to cash out. Ford needs cash. Amazon isn’t going to keep funding consumer products which are getting produced instead of their delivery vans.

Rivian was never a good investment for retail investors. It was priced for sky high results based on an elaborate months-long dog-and-pony show their management team put together. Finding new investors at this point would mean massive dilution, screwing over retail investors more.
What really raises an eyebrow is that the price points weren’t adjusted prior to their major media blast in the Fall and Winter.

Inflation was nuts when Rivian won MT truck of the year. Inflation was nuts when TFL Truck drooled all over their review unit in a series of videos. Rinse and repeat for all the other public-facing promos.

You’re telling me that the company just started adapting to inflation in the period between their IPO and their retail delivery launch? Seems fishy.
 
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What really raises an eyebrow is that the price points weren’t adjusted prior to their major media blast in the Fall and Winter.

Inflation was nuts when Rivian won MT truck of the year. Inflation was nuts when TFL Truck drooled all over their review unit in a series of videos. Rinse and repeat for all the other public-facing promos.

You’re telling me that the company just started adapting to inflation in the period between their IPO and their retail delivery launch? Seems fishy.
Like 10 day old tuna fishy. Rivian played retail investors hard. They kept pricing low as long as possible so they could juice their IPO. They played the media game quite well.

Now that the IPO is over and they have a giant pile of retail investor cash in the bank based on their little shell game, they need to try and make a profit so they can actually survive for the next 3 years.

If Rivian can’t figure out how to get cash flow positive in the next 3 years or so, they will likely be scrapped and sold for bits.
 
If cancellation rate ends up being material (call it 50%), and they knew prior to the IPO that they would have to raise their prices substantially (seems that they might have known), then they may be in trouble. Their number or pre-orders was material information to their S-1, and if that number was already known to be inflated, that'd be a problem. I'm no lawyer though.
 
If cancellation rate ends up being material (call it 50%), and they knew prior to the IPO that they would have to raise their prices substantially (seems that they might have known), then they may be in trouble. Their number or pre-orders was material information to their S-1, and if that number was already known to be inflated, that'd be a problem. I'm no lawyer though.
More fallout than expected... not a good sign.


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