Rivian Crippled by New Layoffs

""These are not changes that were made lightly," Rivian Chief Executive Officer R.J. Scaringe said in an email to staff. No amount of lipstick can make the move something other than it is. Rivian's future is at stake, and Wall Street continues to punish it because of stiff competition and low sales. Rivian has not been able to make the case that it can get more than a tiny share of the U.S. EV market."

"Rivian's current unit production and vehicle deliveries are alarmingly low. Additionally, the time it will take to launch its relatively inexpensive vehicle means the company could barely be alive by the time the brand-new R2 SUV rolls off the assembly line. Its price contrasts with Rivian's earlier formula of extremely premium pricing for what it has marketed as extremely premium vehicles."

"Rivian's stock price is down 2% this year, compared to a 15% increase for the broader market. However, over the long term, Rivian's stock price shows that its prospects have fallen apart year after year. It is down 90% over the past five years. It should go lower. Inexplicably, it has a market cap of $15 billion. Ford's is $49 billion."

Rivian will lay off 600 employees to preserve cash as U.S. EV sales weaken and competition intensifies. Unit production and vehicle deliveries remain alarmingly low, and the company reduced 2025 delivery guidance to 41,500–43,500 vehicles. The lower-priced R2 SUV, priced near $45,000, faces a lengthy launch that could leave Rivian financially strained before it reaches market. Current R1T and R1S models can reach about $90,000 with added features. Quarterly revenue was $1.3 billion with a $1.1 billion loss, and the stock has fallen about 90% over five years, leaving a market valuation near $15 billion.

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