In the last quarter of 2023, the electric vehicle market has witnessed tremendous growth. Rivian’s CEO, RJ Scaringe, declared that the company has gone through a 50% increase in the production of their EVs. If you are one of those who believe the EV market will not survive the inflation, then they are wrong.
Although this sector is newly founded and every newfound project has to go through extreme criticism, it doesn’t mean that this electric vehicle company will go down with the current economic conditions. It is noted that this company intends to give tough competition to big names like Tesla.
Read More: U.S. Venture Capital Investments in Chinese Tech Under Scrutiny
The Factors Thriving The Future of Rivian
When this company started, it had one goal: to make sure the world gets more options for EVs in the market. This shows the clear intention of the company. They want to target the market segment which looks forward to adopting an EV lifestyle but is stopped by the lack of options. In a recent interview, CEO RJ Scaringe highlighted that the reason that stops people from investing in EVs is the lack of affordability and the lack of options.
Production and Affordability
The company is set to increase its production to meet affordability criteria. How is that so? The company will spread the high fixed costs emerging from the production facilities and raw materials into the wide range of output (EVs) produced. In this way, the recurring costs will decrease.
This is where the company wants to hit the market by storm. These vehicles can work beyond the limits of an average electric vehicle because they are built with impressive capabilities. Rivian’s R1T line is known for its amazing performance and off-roading capabilities.
What sets them apart is the long-term vision they have for the company. In 2023, the company announced that they are planning to create a product line that is smaller and more affordable in 2026. Their plan entailing the manufacture of SUVs in 2026 will make their space in the EV market. Stay tuned, as they will share a glimpse of the new product on March 7, 2024.
Besides their promise of making the EV market affordable with more options, the company is open to new collaborations with industry giants. For example, according to reports, more tech-based businesses are reaching Rivian for partnership and strategic collaboration for business prospects.
Collaborations And Future Prospects
Companies like Amazon and Ford have already made their moves in 2029. Amazon has invested $700 million in Rivian in a joint agreement to get 100k electric vans for delivery. Isn’t this amazing? The world’s number 1 e-commerce store will use sustainable means for delivering your products.
On the other hand, Ford invested $500 million in Rivian to collaborate on a project. However, things didn’t go as expected, so they had to call it off.
These collaborations were meant to provide huge capital, expertise for production margins, and visibility for a broader market. Moreover, this reach gained more potential clients for the company.
Since we know the company has a name for eco-friendly practices, every aspect of its production line, business operations, and power is carried through renewable or sustainable sources. With products like recyclable batteries and goals with carbon-neutral targets, they are aligning with the current needs of the world and environmentally conscious consumers.
Also Read: This Shipping Company Has Significant Upside Potential: Is it Worth a Closer Look?
What Role Does Rivian Play In The EV Market?
Rivian, the EV maker, wants to make its mark in the EV market by not being just a carmaker but by being a company that goes beyond carmaking. The company’s goals are strategic as they tend to focus on innovative features to make sure their vehicles go with their commitment towards sustainability. This goal positions them as a key leader of EVs in the United States.
If you look at the last quarter of the company, it has exploded with growth. For the very first time, this newfound company appeared in the California New Car Dealers Association (CNCDA), making it great news.
If we narrow it down to California, we can see that Rivian made news for having the highest growth rate among the car makers in California. Being a relatively new electric car manufacturer, the company saw tremendous growth of 200% as compared to previous years.
Targeting A Specific Consumer Base
Rivian has been a leader in EVs, focusing on pickup trucks, but later, in 2023, they announced that the company would be producing more family-friendly SUVs to fulfil the needs of the masses. Focus on the pickup trucks and SUVs!
Are you getting the point? This shows that the company is addressing the needs of a Pacific type of consumer. The US EV market is currently dominated by sedans and hatchbacks as their demand is high. Rivian wants to attract the attention of consumers who are looking for adventure, utility, and off-road thrills with these EV options.
This kind of consumer need is fulfilled by pickup trucks or SUVs. Rivian provides just that but with the concept of sustainability in mind. The products that this EV company offers tap the growing demand in the United States, making it a tough competitor.
At the same time, the company wants to avoid the hassle of directly competing with existing giants like Tesla. That’s why Rivian’s market share is not divided or distracted.
Technology And Electric Transition
You can’t overlook the technological advancements that this EV company has to offer by offering products like R1T and R1S. The company prides itself on its adaptive suspension and driver-assist systems. When you come to think of it, these advancements push the boundaries and make the sector unpredictable by stating what is possible and what is not.
As we said earlier, the company intends to make EVs more accessible to a wider consumer base by making them affordable. They want to create a balance between production scales and their technology automation so that they can reduce the price without any hindrances.
Final Thoughts
Don’t forget that Rivian, the EV company’s future, is quite promising as the leaders are focused on overcoming the drawbacks and working on growth. The best thing for them is that they don’t have to go through first-hand challenges as they get the chance to learn from the mistakes of their predecessors. Let’s see what role Rivian will play in the future.
Read Next: The 4 Largest Stock Exchanges in the World and the Pros and Cons of Each
DISCLAIMER
You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of SmallCapStocks.com (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.
The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov; the Financial Industry Regulatory Authority (the "FINRA") at www.FINRA.org, and relevant State Securities Administrator website and the OTC Markets website at www.otcmarkets.com. The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at www.sec.gov/consumer/cyberfr.htm, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.
The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.
By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: www.SmallCapStocks.com/Disclaimer and www.SmallCapStocks.com/Privacy-Policy
By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.
I’m Jackson Hartwell, a writer who specializes in dissecting current business events. I’m dedicated to providing you with clear and concise insights into the world of politics, making it easier to understand the latest news and developments.
