Rivian pauses plan to build $5B Georgia factory

[GFB]

I read that Rivian was likely to have a liquidity problem before the Georgia plant could produce vehicles. Because of that, they’re trying to shore up spending before proceeding. But that’s just what I read. We’ll see. It gives people who hate the plant coming to Georgia a few years reprieve at least.

 

[GFB]

Last year their sales were about 56,000. Why do they need a new plant with a production capacity of 250,000? Their one plant in Illinois can produce all they can sell.

I think there’s a misunderstanding there. They sold every vehicle they made. If they produced more vehicles, they would have higher sales. They need more sales to eventually get in the black on their earnings.

 

[Cadcom]

I think there’s a misunderstanding there. They sold every vehicle they made. If they produced more vehicles, they would have higher sales. They need more sales to eventually get in the black on their earnings.

I heard they could produce 150,000 vehicles a year at their current facility. The problem they have is with sales. They only project to deliver 57,000 vehicles in 2024. That’s why they are crawdadding on the Ga plant.

 

[GFB]

I heard they could produce 150,000 vehicles a year at their current facility. The problem they have is with sales. They only project to deliver 57,000 vehicles in 2024. That’s why they are crawdadding on the Ga plant.

Might be correct. They sell every vehicle they produce so there must be a shortfall somewhere. The Georgia plant will bleed money without producing a vehicle for some time. They don’t have the cash to ride that out, I think. As flush as they were, they’ve hemorrhaged money at a crazy rate, which is something Elon Musk has pointed out many times.

 

[Stampede]

I think there’s a misunderstanding there. They sold every vehicle they made. If they produced more vehicles, they would have higher sales. They need more sales to eventually get in the black on their earnings.

They bought the old Mitsubishi (& Chrysler) plant in Normal Illinois. Back then it could produce about 250,000 cars and has almost 2.5 million sq feet of space. I don't think space is the limiting factor here.

 

[GFB]

They bought the old Mitsubishi (& Chrysler) plant in Normal Illinois. Back then it could produce about 250,000 cars and has almost 2.5 million sq feet of space. I don't think space is the limiting factor here.

Is there a choke point in their supply chain that differs from the previous **** box assembler? I would guess there is. But I am not 100% sure what it is.

 

[lostchild]

Is there a choke point in their supply chain that differs from the previous **** box assembler? I would guess there is. But I am not 100% sure what it is.

Cash flow??

 

[Stampede]

Is there a choke point in their supply chain that differs from the previous **** box assembler? I would guess there is. But I am not 100% sure what it is.

I don't know, but I'm skeptical of the claims about their bright future. I thought EVs were supposed to be easier and faster to assemble?

 

[GFB]

Cash flow??

That’s definitely a thing. Comparing a original manufacturer from top to bottom with a one-off assembly plant is odd though.

 

[GFB]

I don't know, but I'm skeptical of the claims about their bright future. I though EVs were supposed to be easier and faster to assemble?

I am also skeptical. Consider they’re developing the entire vehicle from soup to nuts, including software. My skepticism of Rivian goes way beyond anything I have seen mentioned on here.