dortreo
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- First Name
- Michael
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- Oct 20, 2021
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- Boston, MA
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- #1
While we can't definitively know what was going on at Rivian at the time, the Rivian S-1 amendment issued on November 5 (with less than two months of production days left in 2021 and just prior to their IPO) claimed a production target, which now seems... a bit off.
"By the end of 2021, we intend to produce approximately 1,200 R1Ts and 25 R1Ss and deliver approximately 1,000 R1Ts and 15 R1Ss." This despite the fact that "as of October 31, 2021, [Rivian] produced 180 R1Ts and delivered 156 R1Ts. Nearly all of these vehicles were delivered to Rivian employees."
So, when did Rivian know that it wouldn't make its production targets? Did the company really believe on Nov. 5 that it could produce 1200 trucks, or an average of 22 trucks a day, by the end of the year?
Unfortunately, there's no way to answer this question that puts a favorable light on the company. Either company management knew it wouldn't make its targets and filed a document with the SEC that said otherwise, or company management didn't know, which suggests serious disconnects or deficiencies (of experience, communication, judgment, etc.). The fact that no VIN numbers were being issued to LE reservation holders outside Rivian suggests that production must have been at a virtual standstill. (VIN numbers are generally issued when a car or truck enters production.) Surely, someone in management would have noticed this little fact.
Unfortunately, a wrongful termination suit which raised concerns about Rivian's "ability to deliver on its promises to investors" suggests that the reality of the situation was apparent to some execs within the company in a timeframe well before the SEC filing. But the company still chose to file a rosy S-1 anyway (and was richly rewarded for doing so.) I wonder why?
I'm not a Rivian hater at all. In fact, I cannot wait to take delivery of my Adventure edition R1S in, say, 2023 to 2024. But it's discouraging to watch such a bright and talented company make unforced errors by prioritizing short-term profits over long-term reputation. And to descend into corporate speak and obfuscation ("delivery time adjustment" as a euphemism for delay) when really, a little honest, timely communication is what we need.
"By the end of 2021, we intend to produce approximately 1,200 R1Ts and 25 R1Ss and deliver approximately 1,000 R1Ts and 15 R1Ss." This despite the fact that "as of October 31, 2021, [Rivian] produced 180 R1Ts and delivered 156 R1Ts. Nearly all of these vehicles were delivered to Rivian employees."
So, when did Rivian know that it wouldn't make its production targets? Did the company really believe on Nov. 5 that it could produce 1200 trucks, or an average of 22 trucks a day, by the end of the year?
Unfortunately, there's no way to answer this question that puts a favorable light on the company. Either company management knew it wouldn't make its targets and filed a document with the SEC that said otherwise, or company management didn't know, which suggests serious disconnects or deficiencies (of experience, communication, judgment, etc.). The fact that no VIN numbers were being issued to LE reservation holders outside Rivian suggests that production must have been at a virtual standstill. (VIN numbers are generally issued when a car or truck enters production.) Surely, someone in management would have noticed this little fact.
Unfortunately, a wrongful termination suit which raised concerns about Rivian's "ability to deliver on its promises to investors" suggests that the reality of the situation was apparent to some execs within the company in a timeframe well before the SEC filing. But the company still chose to file a rosy S-1 anyway (and was richly rewarded for doing so.) I wonder why?
I'm not a Rivian hater at all. In fact, I cannot wait to take delivery of my Adventure edition R1S in, say, 2023 to 2024. But it's discouraging to watch such a bright and talented company make unforced errors by prioritizing short-term profits over long-term reputation. And to descend into corporate speak and obfuscation ("delivery time adjustment" as a euphemism for delay) when really, a little honest, timely communication is what we need.
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