As the electric vehicle landscape craters, Tesla (TSLA), the early entrant in the sector, will thrive. Despite launching the Cybertruck to target the truck market, Rivian (RIVN) will also grow.
On Dec. 8, 2023, Rivian reportedly cut 20 members of its team responsible for developing long-range battery cells. The firm buys battery cells from South Korea’s Samsung SDI. Its job cut suggests that Rivian will make its batteries at a new factory in Georgia currently being built.
Rivian is a juggernaut truck EV supplier. It forecasts production of 54,000 units in the full year, up from a prior target of 52,000. To expand its addressable market, it amended its exclusivity with Amazon (AMZN). Free to sell commercial vans to other customers, Rivian is on par to produce and deliver 100,000 vehicles in the EDV – electric delivery van – market.
Costs are falling in the EV sector. Supply chains are becoming more robust. As a result, Rivian is best positioned after Tesla to reach profitability soon. Companies like Fisker (FSR), Lucid (LCID), and Vinfast (VFS) are poorly positioned in the EV industry. They will continue to struggle while they produce limited quantities.
RIVN stock bottomed at $16.00 recently. It closed at $19.04 on Dec. 8.