Luxury electric automaker Rivian made several big announcements this week related to its expanding product line. At the same time, though, the company announced that it would pause construction on a factory in Georgia that received some of the most generous taxpayer-funded incentives in state history.
At the same time the company announced that it would pause construction on a factory in Georgia that received some of the most generous taxpayer-funded incentives in state history.
The company already offers the R1T and R1S, a luxury truck and SUV, respectively, which start at $70,000-$75,000 and can cost $100,000 or more.
In May 2023, Bloomberg reported that the company had lost 93 percent of its share value, and its market cap reflected "Almost no value beyond the company's cash hoard." In the fourth quarter of 2023, the company lost $43,372 on each vehicle sold, up from a $30,648 per-vehicle loss in the third quarter.
"To enable R2 to be launched earlier and with a considerable reduction in the capital required for its launch, Rivian plans to start production of R2 in its existing Normal, Illinois manufacturing facility," the company announced.
One year ago, almost to the day, Scaringe reaffirmed the company's dedication to the Georgia project, telling The Atlanta Journal-Constitution, "We're committed to this state and this project," adding that "The future of our company in terms of scaling and growing really relies on the future of this project. There's not another option. We're not planning an alternative. This must work." The electric vehicle market, while growing, is in flux, due to softening consumer demand and persistently high interest rates.
Just last month, Apple-the first company in history to ever record a $3 trillion valuation-canceled its decade-long quest to develop an electric car.
In this case, Georgia officials mortgaged a large amount of taxpayer money on a plan that foresaw the company continuing on a path that no longer seems financially feasible.
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