Tesla Just Sued Rivian and Ended the Future of Electric Cars
, soon after it unveiled its r1s electric SUV, despite being the first to the truck race production, ramp has been difficult because of supply chain issues and increased costs for parts and labor. Due to inflation, in fact, because of these reasons, rivien raised the prices of its Vehicles this past March. Sadly, this caused some consumers to cancel their orders today were looking at where rivien is right. Now why theyre, under a lot of pressure to boost output and where theyre going ravian doesnt have the hundred plus years of history and Heritage like Ford? But all companies have to start somewhere and rivians story belongs to the 21st century. This American startup was founded back in 2009 13 years ago, yet many Americans still arent too familiar with the brand heres. The thing when rivian was founded, the first vehicle is intended to be a sporty Coop, similar to a larger version of the Hyundai Veloster, and it was expected to be released in 2013. But for the first Dozen Years, rivian didnt release a single passenger car. But today theres some 7000 r1ts on the road. If you live in nine select U.S cities, you can even see one thousand rivian electric delivery, Vans or edvs on the road edvs. These were built exclusively for rivians investor Amazon. Initially, rivians goal was to make 50 000 Vehicles this year, but since then theyve reduced the goal down to 25 000 Vehicles. Short lamped rivian released the R1 T back in September 2021.
, the company went public through an initial public offering or IPO on its first day of trading, the market value of the company was under a hundred billion dollars. If youre wondering what that even means. Well, its market value was worth more than Ford and GM at that time, Amazon purchased 200 million dollars of stock. Given the 22 ownership of rivian. Clearly many found the company to be very promising, but todays Outlook is drastically different when the company won IPO. The stock closed at 100 bucks a share today, its around 28 dollars. A share so were talking a drop of 82 percent thats, not a gradual decline, but a steep drop lets talk about the rivian r1t electric truck its a two row: five seater with a starting price of 73 000 and depending on the battery and motor. You select your R1 T will give you anywhere from 260 all the way to 400 plus miles of range. The r1t can drive over three feet of water Rock haul. It 100 grade Traverse almost any terrain, with 14.9 inches of ground clearance and Tow up to 11 000 pounds on top of that, it can accelerate from 0 to 60. In about three seconds, the r1t also comes with three specific Tire: options made specifically for the vehicle were talking 20 inch. All terrain tires. 21 inch road tires are 22 inch. Sport tires, but the r1t hasnt come without its fair share of bumps and bruises along the way.
Take, for example, the r1ts recent 10 0 issues. Apparently there were issues with the powered truck bed cover not operating the way. It should now its not a recall since its not a safety or Regulatory Compliance issue and rivian is working to have a solution in early 2023 and for now, rivian has completely removed the tuna and will replace it with an upgraded version of an unspecified future time. So if youre holding a reservation for an r1t right now, youll need to choose between getting the manual cover or opt for no cover at all. For now, if you opt for no tunnel, youll get a 1500 reduction on the price, whereas the manual one reduces your price by 700. The manual tunnel has 400 liking panels. It protects cargos from light weather and will be fully lockable. Did you know that rivie and email customers not too long ago, to inform them it will be pulling the plug on the less expensive, explore trims for their R1 T, pickup and r1s SUV rivian decided to cut the trim to focus on delivering as many vehicles as Possible, but even before that, rivian scrap the five seater version of the r1s opting for the seven seat version. Instead, speaking of the r1s Caribbeans upcoming r1s is a three row. Seven passenger SUV rivian is marketing. It is the worlds first electric Adventure vehicle you can see its intent by the car specs Battery Systems and r1s can endure temperatures of 130 degrees, Fahrenheit all the way down to minus 25 degrees, Fahrenheit and depending on the battery pack and motor you select your r1s.
Could have anywhere between 260 to 320 plus miles of range starting price of the r1s is 78 thousand dollars this past July, rivian edv is a special designed for Amazon hit the road, nine select cities, including Seattle, San, Diego Dallas and Chicago right now, theres about a Thousand of these on the road and thats out of Amazons order of 100 000 edvs that they made did you know that Ford is an interest in Ruby and two back in 2019 Ford led a 500 million dollar investment round in Rivier and since then, its invested In private funding rounds of Rivier, originally the two had a strategic partnership to co, develop an electric, Lincoln SUV, but when the pandemic set in they canceled the collaboration and split up the two Brands mutually decided. We best to focus on their own separate projects. Before I chose to focus on increasing Global Production to 600 000 EVS annually by 2023., if you were to guess whos rivians biggest competitor, is you probably guess Tesla and youd be right? Actually, the two companies share some similarities, but they also have some interesting differences too. For example, Tesla has split their focus across multiple types of EVS, but rivian is focusing on adventure vehicles from the get go Tesla focused on consumer retail sales Griffin, on the other hand, focused on building vehicles for both the consumer and for the commercial Market. At the same time, and then, of course, we got the difference in company prop, it would be unfair to compare the two companies revenues today since Teslas been around six years longer than rivian, but just compare when Tesla went public in June 2010.
. At that time, Tesla had already delivered 1063 vehicles and they made 147 570 in Revenue. They also had a gross profit margin of 19. On the other hand, when rivie and IPO in September 2021, they hadnt delivered any cars by April 2022. Rivian did deliver 2147 vehicles, but they reported a cumulative revenue of 150 000 and they had a gross profit margin of minus 528 percent thats. A huge difference. Part of this reason is because, at the time of the IPO Tesla was transitioning from assembling low volume. High priced cars to integrating themselves as a manufacturer of high volume, low cost vehicles that were made with new manufacturing approaches, and yes, its true that the Tesla Roadster was popular, but it wasnt Tesla manufactured. Actually, it was British car maker. Lotus constantly took care of the final assembly because those also in the process of buying its Fremont Factory compared thats how rivians operating all of its trucks come out of its own plant, Normal Illinois and theyre. Only making a small number of trucks to begin with. According to rivien, their normal plant can produce 150 000 vehicles, but its only producing several thousands per quarter, so until rivian can produce enough EVS, it wont be able to see much return on its investment. Speaking of the two did, you know that Tesla is actually in the middle of suing review back in July 2020 Testify the lawsuit against driven claiming that rivian had stolen highly confidential Trade Secrets through newly hired employees who were former Tesla employees, but thats.
Not the only reason Tesla is doing Riven last year, Tesla added new accusations to the legal case, and this filing Tesla claimed that since July 2020 rivian had continued to poach Teslas staff and Tesla also claimed that rivian had stolen highly proprietary Battery Technology. Since the lawsuit was filed due to pressure from investors after nearly a dozen years without producing a single commercial vehicle, Caribbean says the Teslas new allegations are unsupported. Rivian claims that in many cases, Tesla didnt specify exactly what Trade Secrets rivian was supposed to have stolen. So wheres rivian headed to answer that question. We can look at four recent months in rivians history. In March 2022, rivian revealed it would raise the base price of its r1t by 12 000 bucks and the r1s SUV by 14 500. As you can imagine, the company faced massive backlash on social media, especially in living explaining these increases, would even apply to customers who had already pre ordered later rivian CEO r j scaringe announced that rivian would honor the original price for customers who would pre ordered. He also explained to customers who canceled their pre orders after the price could reinstate their order at the original price they paid skorange even apologized, for the unexpected price. I can commit it to rebuilding rivian customers. Trust if youre wondering why rivian drove out price well Riven attributed to inflationary pressure, increasing component costs, unprecedented supply chain shortages and delays for parts, including semiconductor chips.
It also explained that the original base price admits that way back in 2018, whereas the world scene right now is drastically different and it was then this past July, 2022 rivian started laying off around six percent of their Workforce. Interest rates and commodity prices are Sky High and only continues to rise. The email went on to say that for rivian to fully realize their potential, its strategy needed support its sustainable growth, so it could ramp towards profitability, and so to do so, it needed to simplify and focus on other, more pressing priorities. These priorities included things like enhancing their R1 pickup, accelerating the development launch of R2 and future platforms and optimizing costs and operating expenses across the country. In September 2022, there were news about rivian and Mercedes Benz working to establish a new joint venture manufacturing company. This company will apparently invest and operate a factory in Europe to produce large electric vents for Mercedes Benz Vans and rivian. The saw electric only production facility will leverage an existing Mercedes Benz site in Central Europe, together, rivian and Mercedes Benz planned to produce two large Vans. The first Fanboy based on Van dot, EA that Samsung 80s Benz Vans electric only platform. The second van will be based on the second generation rivian light van platform. The goal is to quickly scale up the production of electric bands for commercial customers. The rivian Mercedes Benz collaboration appears to have more Synergy than the partnership rivian had with Ford.
Both are sharing Investments and Technology, theyre, also sharing the same strategic ambition, which is to accelerate the electrification of the van Market with Superior and sustainable products that benefit customers and the planet too. This past October 2022 rivian announced it would recall 13 000 Vehicles. The problem is the Fastener that connects the front upper control arm and steering knuckle might not have been sufficiently torqued in some Vehicles. Apparently there were seven reports potentially related to the structural issue of the torque Fastener, and these reports caught the automakers tension. Now, no injuries have been reported as of the recording in the video, but the company did find the Nut could fully loosen actually its rare, but it can happen and since its a safety issue recall, was issued this wasnt. The first mass rivian recall, though, recalled about 500 to the r1t electric pickup trucks here in the states due to the possibility of airbags, not deactivating. When a child was in the front passenger seat, another recall could very possibly derail its EV. Production goes even into 2023.