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 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.
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.
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 (TSLA) has introduced a new direct discount for the Model Y in China as the latest of a series of incentives to boost demand during this critical end-of-quarter push.
The automaker regularly offers discounts at the end of every quarter, but the incentives to boost demand have been the most wide-ranging ever this quarter.
Over the last month, we have been documenting the many sale incentives and discounts that Tesla has put in place to ensure it creates the demand for a record quarter.
Tesla aims to deliver a record number of more than 515,000 vehicles in Q4 in order for its sales not to be down for the whole year. That’s ~30,000 more vehicles than Tesla’s last record quarter, which was Q4 2023.
And everywhere, Tesla is heavily subsidizing loans with lower interest rates. That has been the main incentive in China, Tesla’s biggest market, until now.
Tesla’s New Discount in China
Today, Tesla announced that it is offering a ¥10,000, the equivalent of $1,380 USD, discount on the final payment for new Model Y vehicles:
The new discount can be combined with Tesla’s subsidized 0% interest financing, which has been Tesla’s main incentive in China all year.
Electrek’s Take
Based on insurance data, Tesla is tracking ahead of last year’s deliveries in China, but it is going to need to beat its last record by a significant margin to make sure not to be down for the whole year.
Model Y is Tesla’s most popular vehicle, but Tesla is also going against the expectation of the design refresh coming early next year, which can negatively affect demand.
This discount is likely to combat that and maintain Tesla’s current good momentum in China.
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We now have more details on the massive recall, which just keeps growing. Hyundai and now Kia are recalling more than 208,000 electric vehicles in Canada and the US to fix a problem with the loss of driving power, which can increase the risk of a crash.
For the second time this year, the automakers are recalling huge swathes of EVs and other “electrified” vehicles in North America, citing concerns about a loss of driving power, the National Highway Traffic Safety Administration (NHTSA) said on Friday.
In the US, Hyundai is recalling 145,235 EVs, including the 2022 through 2024 Ioniq 5, the 2023 through 2025 Ioniq 6, GV60 and GV70, and the 2023 and 2024 G80. In Canada, Hyundai is recalling 34,529 vehicles that were produced between March and November of this year, according to Automotive News Canada.
As for Kia, the recall includes close to 63,000 Kia EV 6 vehicles from 2022 through 2024 in the US, but the company has yet to offer details on its Canada recall.
It looks like the issue stems from “the integrated charging control units in these vehicles, which may become damaged and fail to charge the 12-volt battery. This malfunction could lead to a complete loss of drive power, posing safety risks for drivers,” the NHTSA stated.
Back in March, Hyundai, Kia, and Genesis issued a similar recall for 147,110 electric vehicles – that recall centered, again, around damaged integrated charging control units failing to charge the battery.
The South Korea automaker has said that all owners of affected vehicles will be notified by letter mail on the next steps to take. This will involve bringing your vehicle to one of the company’s dealers to inspect and replace the charging unit and its fuse if necessary, along with performing a software update for the charging units.
Importantly, no crashes, injuries, fatalities, or fires due to this issue have been reported in the US or Canada, Hyundai reported.
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A group of Tesla vehicles spotted under covers at the automaker’s test track at the Fremont factory is raising some questions.
Tesla has a very small test track on the ground of its first factory, Tesla Fremont, in California.
Now and again, people fly drones over the factory and catch glimpses of new cars being tested. Youtuber ‘Met God in Wilderness’ is one of those drone pilots who regularly fly over the factory and while he didn’t catch vehicle being tested, he did catch some curious vehicles under covers next to the track:
The vehicles are all covered, and therefore, it’s hard to tell exactly what they are, but the different shapes are intriguing and raise some questions.
It looks like three, maybe four, different kinds of vehicles:
We know that Tesla is working on three new specific vehicles: a Model Y design refresh, and two new cheaper models based on Model 3 and Model Y.
All three vehicles are expected to be unveiled early next year.
Electrek’s Take
At the risk of stating the obvious, getting much information from vehicles hidden under cover can be hard. It’s even possible that some of those have shape camouflage, which is sometimes used by automakers – although I don’t remember Tesla ever using that.
So here are my best guesses. Take them for what they are: guesses.
The most interesting ones to me are the first two on the left in the picture above. The last vehicle on the left looks like it could be a smaller Model 3.: