Posted 2/23/2024, 1:40:00 AM
Rivian faces dire warnings from Musk about costs, job cuts amid slowing EV growth
- Elon Musk warns that Rivian needs to cut costs "dramatically" or it will go bankrupt within about 6 quarters at its current rate. He advises execs to "live in the factory."
- Rivian announced disappointing Q4 results and plans to cut its salaried workforce by 10%. Its shares dropped 26% the next day.
- High interest rates are hampering demand for EVs at both Rivian and Tesla. Growth in the EV market has slowed recently.
- Rivian will unveil its new R2 EV SUV in 2026 to compete with Tesla's Model Y in the $45k-$55k price range.
- Musk says Rivian's product design is good but the hard part is achieving volume production with positive cash flow, which Rivian has yet to demonstrate.