How I'd SAVE Rivian from Bankruptcy 📈
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- Опубликовано: 8 июн 2024
- To understand the urgency of Rivian's cash, watch this: • I Sold All My Rivian S...
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0:00 Intro
1:39 Quad Motor
3:30 NACS
5:16 Adventure Network
7:22 Colors
8:43 Wiring
10:35 Heat Pump
11:28 Battery
13:58 Improvements
16:45 Repairability
17:18 Connectivity
18:33 Outro
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Music by: / randyvazquez 
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i’m hoping this comment improves the videos. i keep waiting for you to say effective instead of affective. it hurts my ears and heart. thanks for reading this.
LOOL!
i'm honestly really hoping Rivian survives as a company.
800V doesn't have that much of an impact, especially if you haven't designed for it from the beginning. If they're burning through money right now, it wouldn't really make sense to burn even more money. They would have to redesign the cooling, heating as well as the entire battery pack. The cells have to reach 800 volts, it's not just a simple switch.
48V, lighter materials, more efficient castings, less options, cheaper to produce motors, and simplifying wiring systems are what will truly drive down prices. But what they really need is vertical integration.
But when i see their battery pack for 4695, it need to be 1000v system.. am i wrong? Please teach me if i was wrong
All good points, Like the old saying "Keep it simple, stupid!", they would be well advised !! And yes I am an investor.
As someone who lives in Colorado, I disagree on your elimination of the quad motor. I could see so many off-roaders snatching up an R2 if it had zero luxuries (cloth seats, no moonroof, ect (making it cheaper that way)) but were equipped with a quad motor and their independent air suspension. They can finally embrace the lower income granola folks like myself. Good points though, they need to act fast.
There’s plenty of quad motors in inventory that ain’t selling
As much as I'm hoping Rivian will make it, it's more realistic to expect them to go under. Then, they will hopefully be purchased by Amazon or Jeff Bezos for the ultimate billionaire face-off between Jeff Bezos and Elon Musk with Rivian vs Tesla and Blue Origin vs SpaceX.
I think VW/Porsche would be the most natural buyer for Rivian
@@redskytitan VW hasn't succeeded with clean diesel nor with its charger network Electrify America (part of the consent decree after the diesel scandal). It seems to have become a place that technology goes to die.
A better fit might be Nissan, because as much as in spite of its difficulties. They should be better motivated, and were early movers in EVs A merger with Rivian might put them back in the game, and they could help Rivian ramp to high volume efficient production, which is what Rivian needs now...akin to Tesla's transition back when from selling tens of thousands of highish price models S and X, to hundreds of thousand and millions of models 3 and Y, the latter now the best selling car model in the world. If Rivian stays in the low volume USD 80,000 SUV/pickup niche, it likely dies, given its ongoing losses. If Nissan drifts aimlessly along its current path, it might shrink and eventually die, maybe become a badge on a Chinese car. The urgent challenges of both should motivate both; the positives of both (and there are some) could be enough to succeed or survive, amidst the likely coming bloodbath.
I agree with the charge network, it's a prestige thing more than beneficial so can easily be scrapped. I don't know if options really cost that much. Changing paint color isn't really a cost issue but a minor logistic one. Same with interiors. Similar with pack sizes, just removing the top pack doesn't save them money unless they were losing a lot on just that. You'd have to raise prices as well to make a difference. Quad motor might be a bit complicated, not sure but now that they are developed, I'm not sure options as such are the cost issue. I think the problem has to be cost of parts from suppliers. I think it's entirely possible Rivian just said yes to whatever prices they were given and never really did the math. I saw used headlights for sale on ebay for ~600$ a piece. If that is anywhere close to what Rivian pays for them, that's where your problem is. I have no experience specifically making cars but that sounds way off to me. And this could be a problem for every single part in the car. Either they are being robbed or they never bothered to optimize anything. The headlight could be super complex. Massively overengineered and just gave the contract to whomever was willing to make it. Tesla optimizes everything and they are vertically integrated. They suffer no fools unless it's Elon who's wrong then they have no choice :)
I am amazed at how much money Rivian is losing. If I was a federal accountant I'd be suspicious of embezzlement. A coked up wife could spend that much in a Hermes store.
Good list. I'd also suggest reducing the ecu's as planned for R2 and 3 since that supposedly reduced costs by thousands
Agree on all fronts. I really Rivian makes it.
*hope... Me too 😊🧡
As a Rivian shareholder, I'm all for your cost cutting ideas. Most people are intimidated by the ideas of others because they didn't think of them themselves.
These are good suggestions Drew. As a previous R1S owner, efficiency was an issue, all the issues you mentioned are relevant. What you did not mention is vampire drain, really excessive on this vehicle. Although I was able to slow it with settings, this aggravated me throughout my ownership.
I never used the camp speaker, I would have preferred a cubby its’ place.
Hopefully Rivian will throttle the money flow down, these are great products.
The elephant in the room went unadressed: R2. Rivian appears to have pivoted to raising investor capital showcasing new products. As you note, many of these features will be in R2, and people may order that and wait given relative price.
This was great. I am looking to Mayyyyyybe purchase a Rivian but I can't find their incentives. Or better yet, I don't see a lot of ppl on YT talking about it similar to Tesla. I love the R1S but its tooooo expensive. Any deals out there?
Buy one that's gently used
If there isn’t a service center 30mins from where u live don’t buy it same for Tesla or any vehicle
@@wasteofspace9184 Very Sound Advice. This writer owns a Kia Niro BEV for just this reason. The dealer is close. For now, Tesla service is 03 states away, Rivian is half a nation away, VinFast is an ocean away.
@@wasteofspace9184 Amazing insight. Never thought of that. I searched and it’s an hour ten away. Gonna have to be a no go. Thanks.
@@xaviermartin15 I like rivians more then teslas especially as Tesla removes basic things like stalks. Maybe in 10 years I’ll be able to have one. They will survive as they already have vehicles on the roads and have very good reviews outside of repairs.
I can deal with smaller range if charging speed is good and charging locations are plentiful.
Brilliant cost savings recommendations. I would Prioritize them by quantifying each cost-saving benefit to the company. What are the cost savings and when will Rivian reach dollar-one profitability by implementing your recommendations over time?
Shouldn't RJ follow Elon’s template for cost savings by ruthlessly eliminating costs while maintaining the R1T/S’s product distinctiveness??
I just invested $5k in Rivian stock as of yesterday . Should I sell and find another stock to invest in?
Relocating the chargeport isn't happening. It would likely involve redesigning not just the vehicle parts, but also probably they would have to rethink some stuff in the assembly line. Not to mention a lot of parts that have overlaps between different vehicles involving energy systems and components around that would have to be replaced. And then think about how they also have to support legacy vehicles that had the charge port in the other location. And then after that, what happens to the existing charge stations? You think making that kind of change would actually SAVE money?
They have to redesign the rear sheet metal anyways because of the repair costs. The wiring is longer for the front port. Plus the supercharger advantage is huge. They wouldn't have to move much componentry because cables tend to go straight from the port to the BMS.
as someone who is now in the market for an ev suv/truck (my model 3 got rear ended by a model s 😂) but mostly for hauling my life around from college my only affordable options are rivian or wait for regular price dual motor cybertruck. my main concerns are storage volume, (cybertruck wins with bigger bed and interior) good software, and port utility (cybertruck wins with nema) to power my studio in emergencies. and as much as i love range i recognize its not really a necessity for me beyond 300+ miles. To win me over, all i really need is that nema port and maybe some future proofing in the way of architecture and charging speed i can deal with the rest. crossing my fingers that we actually get a refresh this year if not i guess i deal with mediocre cybertruck charging 🤷🏾♂️
A college student wants a $120K Cyber truck! What are you majoring in --Politics? How about looking at 02nd hand Ford Lightning? Its loaded with outlets, power ports
Hey getting sodium batteries domestically in USA seems unlikely soon BUT wow if they could offer an option with 250 miles that gave them better margins hey why not!?
it is about making money, once you own chargers you make tons of money
As a Rivian shareholder I'm electing Drew as the new CEO of Rivian
I honestly think they unveiled the R2 and R3 to earl. they NEED to get the profitability or on a plan and then.
I also agree, I think going forward all cars/EVs that are using NACS NEED to get on board and, agree to have them all in the same place.
Rivian’s in a real tough spot. If I were in the market today, I’d buy the Lexus GX550 Overland. The problem is price. As a quad motor R1S owner, I can say the R1S is pretty stripped down in terms of features for what you pay. Yes, the power and drive modes are great, but I don’t drive the car to it’s full potential because I’m so worried about range on road trips. I would not stop the quad product. Instead, they need to get the price down because even at $80K, buyers expect full time AWD + off road modes and 400+ miles of EPA range (which translates to roughly 320 miles in real world driving). That would allow them to see increased demand and better utilization of their plant which has the capacity for around 200,000 vehicles per year. I like some of you other ideas to simplify, but bottom line is they need fixes to the R1S to make it both more competitive and less expensive.
How do you know that the vehicles aren't already profitable? Up until recently, most of the vehicles sold were sold at the $78,000 pre-order price. Does anyone know how much if any money is being lost per vehicle with today's prices?
RJ also said that they would be profitable by the end of the year. Maybe it's because of the new pricing
Gross profit not net
With the recent announcement that all preorder pricing customers left have until the end of September to buy their vehicles makes me think that the refreshed R1 will not be sold at a loss. But only time can tell
Switch to Tesla fsd hardware and reduce part count. Too many redundant parts. Also make the rear motor have coil springs.
Rivian is refreshing the R1 trying to get to positive gross margin by the end of 2024. Stopping production would save them money.
Rivian needs to focus on ramping up volume on the delivery vans.
There is a huge market for electric delivery vans. Amazon will take all they can produce.
UPS, USPS, FedEx, WalMart, Target and others are waiting for mass production of delivery vans.
What is going on with production of the electric vans. Is production ramping up.
We get no information about the production ramp of the vans.
The EDV line has capacity for 68,000 annually. There were 2 DHL vans spotted in their factory lot. They have a ton of capacity to add on new customers for this line and I think we'll see a huge new customer announced during the next earnings call.
Lots of smart business suggestions in here. I hope Rivian makes it too.
Weird comment drew but you been looking more healthy lately. Workout routine vid???
Would be great if they would run there business profitable
Tho that is not what they have been doing or going to do they just spend money like there is no tomorrow and they are 0:02 way to bloated at the top
And they are basically the best run ev company not counting tesla
All these changes you are talking about is impossible for them to do
Even tesla would have a very hard time doing even half of what you are suggesting
Tho to there credit they did not put themselves in the same position as rivian,
The only option for them is to either go bankrupt or to sell the company for penny's on the dollar to a Chinese company
I really do wish that they would get rid of all their upper management and leaders including the ceo and others and put someone qualified to run the business to make it profitable with out making things to cheap or cutting cost to were safety becomes a issue
Tho that is probably not going to happen
There is just to much similar to lucid and the like on how they manage money
Wish them the best regardless being in the same industry as Elon has to be a nightmare for any company
Max pack actually appears to be a positive item, as they’re charging a huge amount for about a 10kwh usable increase, and it’s better for their overall IMHO
After listening to your video, I realized Rivian is GG no RE lol. RIP Rivian. I was at a car auction lot today, and tons of Amazon Trucks being sold off. It's Game over
All good suggestions and things owners and future owners should be okay with...unless they want the company to go under
Rivian and Nissan should merge, with all EVs sold under the Rivian brand in North America, and ICE under the Nissan brand. Sell the EVs directly through Rivian centers in North America, and ICE cars through the Nissan dealer network. Use Nissan factories to build the various R2 and R3 variants, and assist in producibility and production ramp. Rivian trying to follow Tesla's path to mass production seems very hard, and quite possibly too late. Nissan trying to recover its early entrant position in EVs on its own, seems too hard now, better to use a moderately successful, fairly well received modest scale EV brand, help them scale in exchange for their name and designs and immediate access to the supercharger network.
Couldn’t agree more with you, simplify and get rid of non esencial items, but be very careful in not to cheap out other components other wise this will be a disaster. Love Rivian hope they survive.
No disrespect intended, but I believe it is ‘essential’, all the best
I was in total agreement with you until you suggested axing colors. I think it's a shame they already eliminated Compass Yellow. I might be in the minority, but color is a near-top decision maker for me. If I love a car but hate all the colors, I'm not likely to buy that car. After losing the yellow, Rivian Blue was the only color left I was interested in. I probably wouldn't be buying an R1S if white, silver, black, and green were the only choices.
I think they should keep black, white, dark grey, green and blue. They definitely need to ask exterior and interior colors. Only leave black with wood and green interior.
They spent a lot of money and came out with an R3 that looks like a retro Yugo. Rivian is the one EV I am tempted to purchase. Not sure they will be around is a big issue.
You began the video on the right foot, advocating for simplicity - delete trim options, reduce assembly line complexity, halting all new charger construction, etc. But it very quickly became a wish list of things to ADD, the very opposite of simplifying and saving cash. Half your suggestions involve completely re-engineering the current IN-PRODUCTION vehicle. Change the battery, change the body panels, change the steering wheel, put in new glovebox. They're not gonna be able to implement that in a two-month production halt. Even if they wanted to incorporate all your suggestions, it would be far better to just END production of current models, and implement all the changes into their future models.
Rivian has a wonderful idea for a vehicle from an idealistic point of view. From a practical point of view, they are too expensive, not efficient, and too big. Who is the real luxury pick up truck buyer? I haven't done the market research so I don't know, but I would guess that they would be business owners. So you could call the truck a company vehicle for use and taxation. Are those people going to care about going electric? The case for Rivian being better for adventure off road exploration and experience is specifically related to quad motor torque vector control. A limited market and your idea makes sense for limiting quad motor production. It's ironically strange that we have this fascination with massive powerful apocalyptic defying vehicles when the impact of building, using, and maintaining those vehicles is leading to that apocalypse. Self fulfilling prophecy.
This outline has great merit. Tesla followed the Original VW beetle design ethos; one shape, one colour, steel wheels, plain interior, bare bones creature comforts. That with GOOD PR made VW a world power house. And it worked as well for Tesla , and history and facts do not consider anyone's view of how Evil Tesla is OR How Perfect the Tesla is.
Most of these suggestions would help bankrupt them faster from either unnecessary costs and/or bad press. And the quad motor drop makes zero sense.
Start selling the R2 &R3 in volume, but they need time to do so...
you cant compare tesla spending per unit 10 years ago compared to Rivian. The technology that Rivian has in its cars today has to be on par with Tesla. And that is not cheap
“A lot faster” not “a lot more faster” :)
Send to RJ
I feel like rivian should install rivian branded Tesla super chargers in the adventure locations they want. It would be a win for both. The charging port location on the wrong side is a big negative.
800 volt on R2 please
Nema port in the back to please
No. Range is of utmost importance. For mass adoption, we need higher ranges. Even non-EV people know that range gets cut in half in winter driving. So at least 400 miles of rated range will net 200 miles of actual range in bad conditions.
I agree with most of what you state. I'd cut deeper though. I honestly think Rivian is spreading themselves too thin with the current plan. If I'm the COO I'd push for the following (controversial) list of changes immediately:
1. Ditch the quad motor version.
2. Add an Acceleration Boost software upgrade for the dual motor.
3. Drop down to the top 3 interior and exterior colors.
4. Adopt the supercharger hardware for the RAN instead of building your own, just rebrand with Tesla so that it's a Rivian Supercharger. Purchase the design from Tesla and do a revenue split with them for each Rivian branded supercharger network.
5. Put the NACS charge port in the right place on the next R1 versions (driver side rear).
6. Ditch/Delay the current R2 plan and instead double down on the R2T; take the truck market with a model 3/Y like strategy. Honestly, the R2 is taking on the model Y which is the #1 selling car in the market right now and has 2 years to improve before the R2 is even out.
7. And for the biggest move that would save the company..... force the company to solely focus on Trucks (consumer) and Vans (commercial). Put a pause on the R1S. Have the goal to be the #1 in the consumer electric truck market, period, full stop. Ford and Toyota are begging for someone to take their current lead in (ICE) trucks. I believe Rivian could take that market with eV trucks with the Tesla Supercharger rollout and making a cheaper version of the R1T.
Just my $0.02 on how to "Save" the company..... which also makes the company a great acquisition target too btw! In fact, if they executed the above and became profitable they'd be a better acquisition target than they will by continuing the current burn rate. In fact if Tesla/Ford/Toyota/Apple/Amazon acquired them they'd likely do #7 anyway (except for Apple who might want them to expand into the car market).
Ok, let me have it :).
R1S sells more than R1T though
@@freddybell8328 But why? Did it release after the R1T? Was the Rivian brand name more well known? Was it marketed more specifically to a niche customer base? Are we dealing with the law of small numbers? The barrier is very likely not the form factor but the cost! The roadster sold less than the model S; the model S sold less than the 3/Y…. The major difference? The cost. Taking the form factor you have and optimizing it so that the production costs decrease while the quality remains high is the secret sauce. The market for trucks is high here in the US. The F150 had the #1 spot for over 40 years. I believe the Model Y just took that spot (or the worldwide #1 vehicle) this year. There’s no reason why the R1T could not end up being the next F150….except that Rivian takes it’s eye off the ball and spreads itself too thin thinking they can find a better form factor all while not optimizing. They’ve got only so much cash. Tesla didn’t produce the S, 3, Y, X and CT all at the same time.
rivian just osbourned the R1 with the R2, and the R2 with the R3.
So...... copy Tesla. I mean..... yah, that ought to work.
Tesla also charges a 30% premium on non teslas while supercharging, sooo….
Still cheaper than Electrify America
Unless you pay a monthly membership fee of less than $14, then you can super for the same price right?
If you are talking about cutting cost moving to 800v would increase cost and complexity. You are re-engineering the vehicle. Doesn’t make sense.
Look, I find it exhausting for social media personalities trying to point out improvements or changes Rivian can make to "stay alive". Nothing about the moves Rivian has made thus far show any lack of understanding or lack of strategic planning. They have my full faith of making it as a permanent automaker.
Then don't watch videos about it?
Cringe comment. He posted this video so his audience can understand rivian's manufacturing challenges. @pandahandz6437
Burning over $19,000,000,000+up in smoke since 2019 says otherwise. For less than 100k vehicle's in total produced no less. 😀
Excellent analysis and suggestions! RJ should hire you as COO!
They will simply get bought out!
They will, and they better start that process sooner rather than later. They’ve shown great product and momentum, but without significant cash lift and production efficiencies it’s going to be next to impossible to survive, especially if we hit a recession in the near term.
Pointing out the obvious is... obvious.
Bake sale?
I'm not so sure that Rivian will be acquired by Amazon. Amazon doesn't have any competencies in the car space and it would serve to be a distraction for Amazon's management in my opinion, which is already being stretched thin with their other (much smaller) hardware initiatives. It would also blow a $6 billion a year hole in Amazon's profit margin, and presumably ramping up the R2 / R3 would be even higher cash burn, which would mean Amazon's profit would be cut by 30 to 50% to subsidize the losses by Rivian (not including the debt as part of acquisition), a terrible business decision given that Amazon's management is focused on profitability over all else at the moment.
None of this video was about Amazon
The charge port on the rear driver's side was a dumb move by Tesla in the first place. Tesla should correct their chargers instead of every other vehicle maker copying their mistake.
Huh!!?? By what stroke of illogic do you base this View on? If the 'others' use the Tesla superchargers, then the onus is on THEM to be compatible. This view reeks of the Left wing of US culture
Agreed. Especially if you're towing something, driver's side rear is a terrible place for the charging port.
Plus curb side charging would be way easier on the passenger side
Front side doesn’t work on smaller vehicles. Sedans are more aerodynamic so they have lower frontal slopes which is better for pedestrian safety. RJ himself admitted it’s a bad placement for the amount of HV wiring needed. R2 placement is as far away from the driver as possible
Not all curb side charging is on the right
I don't think I've ever disagreed with you more than in this video
You are basically cutting everything they made their identity
These recommendations are absolutely awful and would bankrupt them immediately 😂😂😂 but still enjoyed the video thanks
Yeah, I am sure some second rate RUclipsr has all the answers.
Just change the headlights. I don't even have to watch this video to know the answer to that one. Sheesh!
Rivian loses $107,400 for every vehicle it sells for a reason. First, here's my proof for saying $107.4k loss per vehicle: In 4Q23, Rivian's GAAP loss of $1.5 bill on 13,972 vehicles delivered, works out to $107.4k/per vehicle. Here's one reason for the losses. Per Rivian's proxy statement, it shows some very generous compensation being paid out to the insiders. As an illustrative example, in '21, CEO Scaringe's compensation was $422.1 mill; CFO Claire McDonough made $31.6 mill and Chief Growth Officer Jiten Behl made $22.4 mill. Second issue, why does a company even need a "growth officer?" In any event, Rivain only delivered 50,122 vehicles in '23. Full yr '23 loss of $5.4 bill. This level of compensation for a start-up is insane and another reason Rivian is headed to bankruptcy
It’s strange that the author didn’t notice an elephant in the room: the number of new models is also a point of cutting costs. As far as I remember Tesla never brought more than one model to the market at a time
Incredible Product = Ghost Drain. Losing up to 1300 a year for existing. It's like saying the Cybertruck is an incredible product when its stainless steel is rusting before delivery.