Many customers who placed reservations for the all-electric Rivian R1T pickup are growing tired of lengthy delivery delays and have been left scratching their heads why some orders are taking priority over others.
The electric vehicle startup recently changed the production sequence of its vehicles. As such, it is now prioritizing vehicles with special interior, exterior, and wheel options rather than those that were reserved or ordered first. Rivian says this move will reduce complexities for its suppliers and allow it to boost production.
However, this has left many early reservation holders in limbo. One such reservation holder is Jeff Wells who secured an R1T in early 2019 but has still yet to take delivery even those some who ordered the trucks years after him have already received theirs.
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The Rivian R1T was the first all-electric pickup truck to hit the market but Reuters notes any delivery delays will prove costly for the car manufacturer as new electric pickups start begin production, including the Ford F-150 Lightning.
Rivian currently has $16 billion of cash in hand but according to Morgan Stanley analyst Adam Jonas, burned through $1.2 million per vehicle it delivered in the first quarter and is tipped to spend $7 billion in cash this year. In a recent Rivian earnings call with investors, Jonas warned the carmaker’s chief financial officer, Claire McDonough, that “since [Rivian’s] IPO, the world has changed dramatically, investors just don’t want to fund negative EBITDA growth companies in this environment.”
Rivian assured the analyst it will bring its costs under control by simplifying its lineup and reducing expenses.
The company believes the worst of the semiconductor shortage is behind it but has not yet said when it expects to make a profit on each car it sells. According to Lucid chief executive Peter Rawlinson, Rivian needs to raise its sticker prices to $95,000 if it wants to return a profit.
