“Our launch is focused on the US and Canadian markets,” Rivian said on the record. “We intend to enter Western European markets in the short term and then into the main Asia-Pacific markets. To meet global demand, we plan to locate production and supply chains in these regions. “
First of all, however, Rivian is looking to start generating income from sales. The company said it suffered a net loss of more than $ 1 billion in 2020, in addition to $ 994 million in the first half of this year. While it’s not uncommon to generate losses for a startup with Rivian’s ambitions, it’s a significant risk factor for investors, the company said.
“We believe that we will continue to experience operating and net losses in the future as we grow, including after the initial generation of revenue from the sale of our vehicles,” said Rivian.
As is common in IPO filings, the company highlighted a long list of other challenges, from uncertainty over electric vehicle adoption rates to its ability to execute its direct-to-consumer sales model. and to properly maintain these vehicles.
Karl Brauer, executive analyst at iSeeCars.com, said Rivian’s aftermarket experience is likely to be more important to the company’s long-term success than just building a great pickup, a SUV and a delivery van that customers could claim.
“With Amazon and Ford investing in it, my concern isn’t that it’s vaporware,” Brauer said. “My concern is what always is with companies like this, including Tesla – it’s the experience of ownership.
“It’s easy to build a prototype, a first production model and develop higher volume production models – compared to the whole process of being an automaker. What’s difficult is post-purchase support, ”Brauer said.
With models aimed directly at consumers, electric vehicle startups are taking a big chance on whether they will be able to serve a growing customer base without the help of dealers.
“Whether it’s Lucid, Rivian or Fisker,” Brauer said, “I want to know how many dealers you have, where do I go to get it fixed and how long does it take? And most don’t have good answers.