Upstart EV manufacturer, Rivian, has been having a bad time of late – from Amazon’s betrayal to a COO stepping down – can they make a comeback?

I was always taught that competition was a good thing…

Maybe not for profits or the companies themselves – but for the overall health of a given sector or industry. 

Why? 

Competition breeds innovation. 

When you’re the only game in town – you can get lazy and rest on your laurels – whereas competition makes you have to change things in order to stay… well, competitive. 

That being said…

Sometimes, being the only game in town creates innovation as well. 

For example, look at Tesla (TSLA) – the company is constantly changing and innovating in order to keep their tech-savvy customers happy – as well as appeal to those who have yet to purchase one of their vehicles.

Now, I know what you’re thinking…

“Shawn, Tesla isn’t the only game in town – there are a bunch of EV’s out there other than Elon’s offerings.”

Yeah, I know…

But when you’re out and about on the streets of America – how many OTHER electric cars do you notice? I’ll bet dollars to donuts that you notice Tesla EVs though. They may not be the only game in town – but they might as well be – as nobody can really hold a candle to them.

Roadblock After Roadblock After Roadblock

That being said…

It’s not for lack of trying. 

A few other EV companies have popped up over the past few years – trying to grab their share of the industry. 

The problem?

They aren’t Tesla – and to the general public – if you’re not Tesla, you’ve got a LOT of work to do in order to get people to notice you. 

That’s the biggest roadblock…

Recognition. If you can get over that – you can start making some headway – unless you’re Rivian (RIVN) and keep running into roadblock after roadblock. 

Rivian sort of burst onto the scene over the past year as the next EV company to have the potential to truly make a mark…

And with Jeff Bezos and Amazon as a 20% stake holder in the company – it was setting up an informal competition between him and his billionaire rival, Elon Musk – as just like their competition for commercial space travel, this was putting them in the same market once again. 

Their stock debuted back in November – and shortly after – the price shot up from $100 – all the way up to $172…

But then those roadblocks started popping up.

After cooling down from the IPO – the stock traded at about the $100 – $120 range for the rest of November – with a little dip in December…

And then , disaster struck – as last week, word started leaking that Amazon made a deal with ANOTHER company to manufacture EVs, Stellantis – causing Rivian shares to slide below $100. 

It was a shot that Rivian didn’t need – and even though Amazon and Rivian tried to mitigate the damage with statements about strong relationships and agreements – it didn’t really help. Public perception can be a powerful tool – and it was going against Rivian. 

Rivian’s Turn For The Worse

This was bad…

But it seems that things are going to get worse for the EV maker as there seems to be even more bad news coming. 

Rod Copes, the company’s chief operating officer, stepped down quietly last month – creating an even worse picture for the public about the company…

Something reflected in the drop of share prices yesterday and today. 

It’s like this company can’t catch a break.

Because this news comes in conjunction with the fact that the company’s regulatory filing revealed on Monday that it only produced 1,015 vehicles in 2021 – while only delivering 920.

It’s like the EV gods are against this company at every turn…

Which generally means one of two things: either their doing things RIGHT and forces are aligning against them.

Or they’re doing things wrong and what we’re seeing are the consequences of that. 

Either way – Rivian has a tough road to hoe – and have a LONG way to go before they’re even a blip on Tesla’s radar. 

Here’s hoping the company can turn things around…

But I wouldn’t hold my breath.

Need I remind you of what their score is on the Green Zone Fortunes rating scale

 

Right now, the company is a gamble – pure and simple.

They can come back from this – they just need to produce – as there is no greater metric for success than production. 

While it is nuanced – being successful isn’t rocket science…

And Rivian CAN be a success – they just need to get things back on track. 

With enough time and effort… 

Anything is possible. 

“Bad luck never lost a race.” – Mark Getty