Rivian (RIVN) CEO discusses the road to profitability, supply chains, R2 platform, and more
RJ Scaringe, CEO of Rivian (RIVN), sat down with Charlie Coldicott, head of global automotive research at Redburn, to discuss demand, supply chain constraints, the R2 platform, profitability, and more.
Rivian exploded on the scene as one of the most intriguing electric vehicle (EV) makers after going public on the NASDAQ exchange a little over a year ago (November 9, 2021).
Investors rushed in to get their share of the future of the auto industry, pushing Rivian’s market cap well over $100 billion, surpassing both Ford (F) and General Motors (GM). Since then, Rivian has fallen back to reality (as with most unprofitable, growth companies) with a current market cap of around $26 billion.
To make matters worse, RIVN stock is down 72% this year. How has Rivian lost almost a fourth of its value?
To be fair, it’s not all Rivian’s fault. Some of it has to do with events outside the company’s control. Rising interest rates, geopolitical tension, and supply chain bottlenecks have slowed Rivian’s momentum while presenting hurdles for the company’s future.
In spite of this, Rivian is plowing ahead, confident it has what it takes to not only succeed but thrive in the evolving auto industry. In the third quarter, Rivian said it has produced over 15,000 EVs since the start of production while reaffirming its 25,000 goal for 2022.
Although the company is confident, investors are more hesitant, wondering if and when Rivian will turn a profit.
Rivian’s CEO RJ Scaringe sat down at the company’s Redburn’s CEO Conference to discuss the road to profitability, overcoming supply chain hurdles, the upcoming R2 platform, and more.
Demand for Rivian vehicles
Despite concerns over a slowing auto industry, Scaringe says he is confident the company can sell everything it makes with a strong order backlog that stretches into 2024.
Even recently, Scaringe notes, the company is seeing a strong order intake for Rivian vehicles. The company is trying to manage its backlog because too much can deter new buyers. One way of influencing orders is with price changes, which the company did in March.
Scaringe says there’s still room to stretch prices with different options, such as dual or quad motors. He adds Rivian’s unique capabilities continue driving demand.
Establishing its supply chain for the future
As the US and world venture toward 100% EV adoption, Scaringe says the least talked about hurdle is battery materials.
With nearly every automaker transitioning to an all-electric portfolio, demand for critical battery materials is skyrocketing, pushing prices higher. For example, lithium and nickel, two essential minerals for electric vehicles, are up significantly this year.
Establishing a consistent supply, Scaringe says, can take time with multiyear projects that need to come online. For this reason, it’s crucial to lock in capacity now for future production.
To that end, Scaringe says Rivian is building a “portfolio of relationships” for different setups. He adds that the recently passed Inflation Reduction Act supports domestic investments, which will help drive EV growth and ease the transition.
Rivian Profitability
In the most recent quarter, Rivian’s losses widened to $1.7 billion as the EV maker scales production. The company noted in its Q3 shareholder letter:
As we produce vehicles at low volumes on production lines designed for higher volumes, we have and will continue to experience negative gross profit related to labor, depreciation, and overhead costs.
Scaringe says it has been a “challenging year” with Rivian launching four products (two versions of the EV van, the R1T, and the R1S). Launching one vehicle is tough, but launching four is complex.
The company has experienced “unforeseen challenges” as a result, setting production back. To overcome this, Rivian’s CEO says it has first worked to establish the supply chains necessary. And now, it’s focusing on ramping production consistently.
As Rivian mentioned above, it has identified a few of these challenges (capital efficiency) and is now working to address them. For example, the company has added a second production shift to accelerate production.
Although the company is working hard to address these factors, Rivian is not out of the woods yet. The challenges are “well understood,” as Scaringe puts it, but they will still face hurdles while scaling.
Rivian has noted it has sufficient capital until at least 2025. This year, the EV start-up has focused primarily on scaling production. In 2023, Scaringe says, Rivian will work to reduce costs and drive volume, which will steer them toward positive gross margins.
The company is looking at all ways to maximize efficiency and cut costs wherever needed. For example, Rivian reduced its head count earlier this year and has streamlined many processes for its R1 models.
R2 Platform
Rivian plans to launch its next-generation EV architecture, the R2 platform, in 2026. But the company is already getting excited about the opportunity it will bring Rivian and EV buyers.
Scaringe says the R2 platform showcases the best of Rivian’s qualities, such as:
- Capability
- Aerodynamics
- Refinements
- Functionality
Although Rivian is targeting a lower price point, it will “still be very much a Rivian” as the company plans for significant demand. The company plans to implement the same “simplicity” it has learned to use with the R1 series.
The R2 platform is designed to be a much higher volume architecture and will launch in multiple global markets, according to Scaringe.
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Electric vehicles’ share of the market continues to climb in America’s second city, with BEV registrations up more than 50% in the first quarter of 2025 compared with the same period last year. Great news, but charging hasn’t up – but a new plan from Chicago Department of Transportation aims to build up enough infrastructure for the city to keep up.
In a bid to keep up with the rapid growth of EVs, Chicago Department of Transportation (CDOT is currently seeking public feedback on a plan called “Chicago Moves Electric Framework.” The city’s first such plan, it outlines initiatives that include a curbside charging pilot through the city’s utility, ComEd, and expanded charging access in key areas throughout the city.
Unlike other such plans, however, the new plan aims to focus on bringing electric vehicle charging to EIEC and low income communities, too.
“Through this framework, we are setting clear goals and identifying solutions that reflect the voices of our residents, communities, and regional partners,” said CDOT Commissioner Tom Carney. “By prioritizing equity and public input, we’re creating a roadmap for electric transportation that serves every neighborhood and helps drive down emissions across Chicago.”
Neighborhoods on the south and west sides of Chicago experience a disproportionate amount of air pollution and diesel emissions, largely due to vehicle emissions according to CDOT. Despite that, most of Chicago’s public charging stations are clustered in higher-income areas while just 7.8% are in environmental justice neighborhoods that face higher environmental burdens.
“Too often, communities facing the greatest economic and transportation barriers also experience the most air pollution,” explains Chicago Mayor Brandon Johnson. “By prioritizing investments in historically underserved areas and making clean transportation options more affordable and accessible, we can improve both mobility and public health.”
The Framework identifies other near-term policy objectives, as well – such as streamlining the EV charger installation process for businesses and residents and implementing “Low-Emission Zones” in areas disproportionately impacted by air pollution by limiting, or even restricting, access to conventional medium- and heavy-duty vehicles during peak hours.
The Chicago Moves Electric Framework includes the installation of Level 2 and DC fast charging stations in public locations such as libraries and Chicago’s Midway Airport, “supporting not only personal EVs but also electric taxis, ride-hail and commercial fleets.”
Chicago has a goal of installing 2,500 public passenger EV charging stations and electrifying the city’s entire municipal vehicle fleet by 2035.
Electrek’s Take
I hate to sound like a bed-wetting liberal here, guys, but Chicago is getting EVs absolutely right with big utility incentives on both vehicles and infrastructure, a governor willing to stand behind smart environmental policy, and a solid push for more and better infrastructure in the areas where they’ll do the most good. They’re even thinking of the children.
Here’s hoping more cities follow suit.
SOURCE: ComEd, via Smart Cities Dive; featured image by EVgo.
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With a fully-enclosed, G-Wagen-inspired body and an 80 mile electric range, the Bodo G-Wagon golf cart is the NEV you need when you decide it’s time to get serous one-upping the rest of the Palm Beach country clubbers.
If you love the look of the $230,000 Mercedes-Benz G580 off-roader, but think the 579 hp, 6,800 lb. electric 4×4 is probably overkill for occasional trips to the golf course and country club, this G-Wagen-inspired golf cart might be just what you’re looking for.
The shiny black 2024 Bodo G-Wagon sold at Mecum Auctions last month for $31,900, which seems like it might not be a lot of money to the sort of person who decides to take a flyer on a goofy, limited-use EV that ships with real, metal doors, power windows, heating and air conditioning, fully digital instrument cluster and infotainment, and a “posh,” caramel leather interior.
It even has windshield wipers, power steering, and a rear-seat entertainment system that’s built into the front headrests!
It’s really nice in there
Under the hood, the Bodo packs a 15 kW (20 hp) electric motor drawing power from a 10 kWh li-ion battery that won’t deliver a scorching 0-60 mph time (it only goes 35), but will deliver you and your buddies from one end of any golf course in North America and back several times over, thanks to the G-Wagon’s 80 mile range.
The official Mecum Auctions listing goes into a bit more detail, and I’ve included it here, in case it gets deleted after a while and you’re just finding this for the first time in 2027:
Be the envy of any country club or golf community showing up with this 2024 Bodo G-Wagon Golf Cart. Perhaps more appropriately known as an E-Wagon, this baby G-Wagon is powered by a 15kW motor with a 10kWh lithium battery. Boasting an 80-mile range and a 35 MPH top speed, the Bodo is an enclosed, luxury golf cart that pampers occupants with heating and air conditioning, rear-seat entertainment, power windows, power locks and a posh, caramel-colored interior. With the Bodo fitted with power steering and 4-wheel power disc brakes with brake boost, drivers will think they’re in a full-size G-Wagon, thanks to the multiscreen entertainment cluster, the rearview camera, windshield wipers, turn signals, running lights and so much more.
Finished in black with the right amount of brightwork, the overall vibe is one of jaw-dropping, smile-inducing fun. While the Bodo would be an excellent choice for any golf community, it should also prove to be hugely popular around a race track or car condo community as well, or maybe even a neighborhood with its own airplane runways. Over the past decade in particular, the demand for unique, luxury golf carts has been on the rise, and understandably so. The number of luxury communities with specific interests in sports, aero and auto has also been on the rise, with people buying homes in these exclusive locations to better engage with like-minded people. All too often a golf cart is the perfect way to get around these gated neighborhoods, and this one is enclosed, comes with the amenities of a full-size car and is infinitely more stylish.
You can check out a few more photos of the 2024 Bodo G-Wagon golf cart that sold at Mecum, below – and if you want one for yourself, you’re in luck! I found this brand-new 2025 “G600 E-Wagon” (in white) for $23,900 at Gulf Carts in Santa Rosa Beach, Florida. Head on down to the comments and let us know if you buy it.
G-Wagon golf cart gallery
SOURCE | LOTS MORE PHOTOS: Mecum Auctions.
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