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Rivian (RIVN) is cutting more jobs as the EV maker aims to improve profitability. This is the second round of layoffs this year, but it’s only 1% of the workforce this time.

Rivian is cutting another 1% of jobs

“This was a difficult decision, but a necessary one to support our goal to be gross margin positive by the end of the year,” Rivian said in an emailed statement (via Automotive News).

Rivian plans to cut another 1% of its workforce as the automaker works to improve profitability by the end of the year.

The statement read, “We continue to work to right-size the business and ensure alignment to our priorities.” This is the second round of layoffs from the EV startup this year.

After releasing its fourth quarter and full-year 2024 earnings in February, Rivian announced it was laying off 10% of its salaried employees.

Rivian’s CEO, RJ Scaringe, said the move was to “maximize the amount of impact we can have as a company” on the company’s media call. Scaringe explained that Rivian is “not immune to existing economic and geopolitical uncertainties.”

Rivian-cutting-jobs
Rivian R1T (left) and R1S (right) (Source: Rivian)

Rivian beat expectations, delivering 13,588 vehicles in the first quarter. Meanwhile, the EV maker officially shut down production at its Normal, IL manufacturing plant earlier this month for upgrades.

The upgrades are expected to “meaningfully reduce” material costs by the end of the year. Scaringe said a “whole host of changes” will be introduced, resulting in a “dramatic cost reduction” for the R1S and R1T.

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Rivian R1S production (Source: Rivian)

Rivian lost $43,372 per vehicle built in the fourth quarter. Although that’s up slightly from Q3 ($30,500), it’s still down significantly from the over $124,000 loss per vehicle in Q4 2022.

Following the plant upgrades, Rivian believes it can achieve a modest growth profit in the fourth quarter.

Q3 ’22 Q4 ’22 Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23
Rivian loss per vehicle $139,277 $124,162 $67,329 $32,594 $30,500 $43,372
Rivian loss per vehicle by quarter

Rivian cutting additional jobs comes after Tesla announced it was reducing its global workforce by more than 10% this week.

Rivian’s stock ended Wednesday near all-time lows of around $8.74 per share. That’s down over 58% in 2024 and 93% from its all-time high of $172 per share shortly after going public in November 2021.

Rivian-cutting-jobs
Rivian (RIVN) stock chart over the past 12 months (Source: TradingView)

Electrek’s Take

Although it may seem extreme, another 1% cut is not massive. Rivian wants to hit its goal of becoming gross margin positive and believes it can do it with a smaller workforce.

Once its Normal plant reopens, it will go from three shifts to two. However, all assembly line workers will remain. Tim Fallon, executive vice president of manufacturing in Normal, explained, “We are increasing the overall capacity and efficiency of our lines.”

In addition, “we’re making a lot of upgrades to our vehicles, many that you won’t see, but they help us with our costs,” Fallon told the Chicago Tribune.

Rivian has already established itself as a true luxury EV competitor. Its R1S electric SUV was the fourth best-selling EV in the US in the first quarter.

Last month, Rivian unveiled its next-gen R2, a smaller, more affordable electric SUV. It will start at around $45,000 as Rivian expands its market. Rivian also teased an even more compact and affordable R3 and R3X.

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Tesla has yet to start testing its robotaxi service without driver weeks before launch

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Tesla has yet to start testing its robotaxi service without driver weeks before launch

Tesla has reportedly yet to start testing its robotaxi service in Austin without a safety driver behind the wheel – just weeks before the planned launch.

For months now, Tesla and CEO Elon Musk have been hyping the launch of “Tesla Robotaxi”, a Uber-like ride-hailing service powered by autonomous Tesla vehicles, starting with a launch in Austin, Texas in June.

We have extensively reported that this launch is disappointing compared to what Tesla promised for years: that all its consumer vehicles built since 2016 are capable of self-driving.

Instead, Tesla plans to build an internal fleet of “10-20” Model Ys and have them offer ride-hailing services in a geo-fenced area around Austin, Texas, helped by human teleoperations. This is very similar to what Waymo has been offering in other cities for years, specifically in Austin, for months now.

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Even with the significant downgrade in self-driving capabilities promised with this project, there are many doubts about Tesla’s ability to achieve the lesser goal.

That’s because the robotaxi service will be based on Tesla’s ‘Supervised Full Self-Driving’ program, which is currently achieving about 500 miles between critical disengagements fleet-wide, according to the latest crowdsourced data.

Tesla will be able to improve on that by optimizing a version for the geo-fenced area in Austin and it has been training its neural nets for that for months with vehicles going around Austin.

However, a new report now claims that Tesla has yet to start testing its service without safety drivers at the wheel – similar to Tesla’s public ‘Supervised FSD’. The Information wrote in a new report:

Elon Musk’s deadline for launching Tesla’s first robotaxi service, in Austin, Texas, is weeks away, but the company hadn’t started testing its cars without a human safety driver as of last month, according to an engineer close to the testing and a former employee. That’s a crucial step required before Tesla can launch the pilot service for customers.

For comparison, before launching its paid ride service in Austin, Waymo tested its vehicles with safety drivers in the area for 6 months and then without safety drivers for another 6 months.

Waymo has now taken over a significant market share of ride-hailing rides in the Texas capital, but it still has limitations; for example, it doesn’t drive on the interstate.

The report also mentions that Tesla has been working with local emergency services in Austin to develop intervention plans in order to avoid causing issues if its autonomous vehicles fail.

Electrek’s Take

This is the biggest softball goal. It’s a fraction of what was promised, it’s something that others have achieved before. It’s a punt created for Tesla to finally get a “win” in self-driving.

If they can’t even make it, it would be disastrous, but at least, I hope that it will finally open the eyes of many Tesla shareholders to the reality that Tesla is actually behind in autonomous driving and that Musk’s latest claims that Tesla will have “millions of robotaxi on the road” in 2026 are just the same as when he claimed it would happen in 2025, 2024, 2023, 2022, 2021, 2020, and 2019: corporate puffery.

My main concern now is for public safety. I have little hope of US regulators being able to stop Tesla considering Trump is firing anyone who got in Musk’s way after he gave him over $250 million.

If Tesla brings its cowboy approach to this, it could get bad quickly.

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Rivian CEO RJ Scaringe shares more detailed images of the R2’s Maximus drive unit

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Rivian CEO RJ Scaringe shares more detailed images of the R2's Maximus drive unit

The development of Rivian’s R2 validation builds continues to progress. We know so because the American automaker’s founder and CEO, RJ Scaringe, continues to pepper us with welcome updates with plenty of fantastic images. The latest post features the inner workings of Rivian’s Maximus drive unit, which will propel the upcoming R2 EVs when they hit the market next year.

Another day, another exciting social media update from RJ Scaringe. Nine days ago, the Rivian CEO shared a peek at the company’s new Maximus drive unit, designed to be more compact and efficiently built to help reduce cost-per-unit production.

Our only look was from outside the drive unit’s casing at the time, but it was exciting news nonetheless. As an encore, Scaringe posted photos of the R2 validation builds on a pilot line at the automaker’s facility in Normal, Illinois.

This evening, Scaringe took to Instagram and X once again to share a better look at the inner workings of the Rivian Maximus drive unit. Check it out:

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Rivian Maximus
Source: @RJScaringe/X

RJ shares more images of Rivian’s Maximus development

Rivian’s CEO posted the three images above, which showcase some interesting perspectives of the developing drive unit. As previously shared by Rivian, Maximus uses a new continuous winding technique that reduces the total welds per stator and thus the total overall cost of building each one.

For comparison, Rivian’s current Enduro drive unit requires 264 stator welds, while Maximus only needs 24. You can see the stator windings in the image above to the left. Scaringe shared excitement in the progress of the Rivian team’s Maximus drive unit as well as some insight in his post:

I love the packaging on Maximus — the drive unit for R2. It has a side mounted inverter that utilizes flat area at the end of the motor to minimize the length of bus bars, keeping them light and efficient. The large planar shape also allows all processing and power electronics to exist on a single printed circuit board.

The inverter chassis closes out the oil cooled motor cavity and seamlessly routes coolant from the power modules to the drive unit’s heat exchanger with no extra parts.

Overall, the inverter part count is reduced by 41% relative to Enduro and structural inverter lid saves more parts and fasteners by also serving as the drive unit mount. I love this design efficiency. (heart emoji)

Looks fantastic, RJ. We can’t wait to see the visual progress of the R2 you share next!

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EV sales are up, Tesla sales are down, and new electric Toyota goodness

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EV sales are up, Tesla sales are down, and new electric Toyota goodness

On today’s thrilling episode of Quick Charge, we’ve a huge spike in global EV sales and a huge dip in Tesla deliveries. Plus a whole bunch of news from Toyota, including an updated bZ that’s just a bit better than before … but is a bit better going to make a big difference?

We’re also on track for more than 1 in 4 new cars sold this year to be electric, with a whole lot more hybrids coming in to make up the difference and drive fuel demand down to a new yearly low. All this, plus the top 5 cheapest EVs to insure when you hit the play button.

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.

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Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.


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