Rivian triumphs as the first to roll out an electric pickup truck, beating giants like Tesla, GM, and Ford.
Get to know Rivian, the up-and-coming commercial truck manufacturer that made history on Tuesday by unveiling the R1T electric pickup at the former Mitsubishi plant in Normal, Illinois. CEO RJ Scaringe took to Twitter, giving the world the grand announcement. With months of preparing trial units, the first customer model finally hit the assembly line. Scaringe twitted his excitement, "This morning, our first customer vehicle in Normal went down the assembly line! I can barely contain my anticipation as we prepare to deliver these to our customers!"
Rivian garnered necessary approvals from the National Highway Traffic Safety Administration, Environmental Protection Agency, and the California Air Resources Board. This means their R1T will be available nationwide. Customers won't find showrooms to test drive the vehicle or view it in person; an online purchase is the only purchasing option available as of now.
As curiosity surrounding electric pickup trucks continues to swell, Rivian isn't alone in the game. Ford, in partnership with Amazon, plans to manufacture the F-150 Lightning, while Tesla's Cybertruck is due for release by the end of 2021, with complete production kicking off 2022. General Motors also plans to debut its Hummer-branded electric pickup and electric versions of its full-size pickup trucks, like the Chevrolet Silverado, by 2022. The only competitor set to release an electric truck soon is another upstart, Lordstown Motors; however, they haven't revealed the production timeline yet.
Set at $73,000, Rivian has officially sold out its initial R1T release, although they haven't disclosed how many trucks will be available at this price point. Customers can place orders for delivery in January 2022.
Brian Moody, AutoTrader's chief editor, drew attention to Rivian's milestone, commenting that electric trucks are the current trend, and being the first to market will give them an edge. Though traditional truck buyers might not immediately convert, the advantages of owning an electric vehicle will become enticing for them, like the potential to use the truck as a power source without needing a separate generator.
Rivian faces challenges in the competitive market. Without physical showrooms, Rivian must create a solid service network and answer questions about the vehicle's quality and reliability. Moody suggested, "That's something they need to tackle."
Rivian is considered privately held and is on track to conduct its initial public offering (IPO) in November. Notably, unlike other electric truck startups like Lordstown and Nikola, it will head to the stock exchange as soon as it reports revenues. Although the stock value of Lordstown and Nikola surged and then plummeted following allegations of overpromising, Nikola has shifted focus to developing water-powered semi-trucks instead of their electric pickup truck.
In the unfolding drama of the electric pickup truck market, Rivian's role as an early mover could directly impact its success. With careful planning and strategic maneuvers, it may seize this precious moment and secure its place in the automotive world.
Ghost Insights: Rivian, the electric vehicle manufacturer, has faced several challenges in bringing their first electric pickup truck, the R1T, to market. These challenges include negative free cash flow and high cash burn rate, supply chain disruptions and manufacturing constraints, increasing competition in the EV market, production ramp-up issues, inflation and supply chain issues, and quality control and reliability issues. To address these challenges, Rivian is forging partnerships, focusing on production efficiency, enhancing customer service, and utilizing real-world testing with Amazon.
