Tesla Inc CEO Elon Musk opined on Thursday that executives of EV startup Rivian Automotive Inc RIVN might want to make investments extra time within the firm’s manufacturing facility to stop an impending bankruptcy.
What Occurred: Musk recommended that Rivian must take two steps to make sure continued survival: minimize prices and spend extra time within the manufacturing facility. “They want to chop prices massively, and the exec workforce must reside within the manufacturing facility or they may die,” the billionaire CEO stated.
This remark follows Musk’s statement from Wednesday that Rivian’s present trajectory “seems like it’s gearing up for chapter in about six quarters.”
Whereas acknowledging Rivian’s first rate product design, Musk emphasised the challenges of reaching quantity manufacturing and optimistic money circulate within the automotive trade.
Rivian’s Form: Rivian reported a complete income of $1.3 billion for the fourth quarter and a web lack of $1.52 billion. The firm ended the quarter with $9.37 billion in money and money equivalents, with a complete liquidity of $10.47 billion, together with an asset-based mostly revolving credit score facility.
The EV maker misplaced practically $43,372 per automobile delivered within the fourth quarter — up from practically $31,000 within the earlier quarter however considerably down from the $124,000 throughout the identical interval in 2022.
Why It Issues: The Tesla CEO is thought for being a workaholic, who denounced work-from-dwelling traits in the course of the COVID-19 pandemic, and has typically spoken about sleeping on the factory floors “as a result of it mattered.”
Musk has beforehand warned of Rivian going bankrupt. In June 2022, he warned of potential chapter for Rivian along with one other EV maker Lucid as a result of their substantial spending, stating, “Except they minimize their prices dramatically, they’re in serious trouble and can find yourself within the cemetery like each different firm (automotive) except for Tesla and Ford.”
Nevertheless, Rivian is now gearing as much as unveil its R2 automobile in March. The R2 is predicted to be priced decrease than the corporate’s preliminary R1 choices, in the identical worth bracket as Tesla’s finest-promoting Mannequin Y SUV.
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Tesla CEO Elon Musk Says Rivian Exec Team Needs ‘To Live In The Factory Or They Will Die’ – Rivian Automotive (NASDAQ:RIVN) www.benzinga.com 2024-02-24 05:23:49
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