Rivian Rebounds Despite Losing 8 Billion: Focus on High End EVs and Investing in Autonomous Driving & Battery Improvements

Rivian has made a bold move by attempting to collect 750 Million dollars from the 50,000 pre-order holders. This could have been avoided if they had taken another approach. Despite this loss in value, the company's valuation is expected to rebound due to the higher profit margin on each vehicle, quicker delivery times and lack of direct competitors for the Rivian.

The entry level price of $90,000 eliminates 95% of buyers out there, which means that their goal of ramping up to 50,000 vehicles a year may not be achieved. To become more competitive and justify a second factory, Rivian needs to expand beyond its current niche customer base. The only other three row fully electric SUV currently on the market besides the Rivian is Tesla Model X, but it is at least $10k-$15k more than even the updated price.

Rivian had two options when raising prices: (1) raise the price of the vehicle in general and keep all the options standard (and free), or (2) keep the base price closer to the original, but start charging for options. They chose option two as it allows people to pick-and-choose the options they want. However, it comes with a cost of 8 Billion in value today.

Building Amazon vans and high end off road EVs is likely a solid EV base going forward rather than trying to match Ford and GM on consumer pickups. This will help Rivian maintain viability while still providing customers with an exceptional product at a reasonable price.

Rivian has also been working on a new battery technology that could potentially increase the range of their vehicles by up to 50%. This would be a huge advantage over other electric vehicle manufacturers and could help Rivian gain market share.

The company is also looking into expanding its production capacity with plans for two more factories in North America, one in Europe and another in China. These additional facilities will allow them to produce more vehicles at lower costs, which should help reduce prices even further.

In addition to these efforts, Rivian is investing heavily into autonomous driving technology as well as developing an app-based subscription service for customers who want access to their cars without having to own them outright. This type of service would make it easier for people who don't have the money or desire to buy an EV upfront but still want access when they need it most.

Overall, despite losing 8 Billion dollars today due attempting collect 750 Million from pre-order holders; there are many positive signs that suggest this loss may not be permanent and that Rivian can rebound quickly if they continue making smart decisions going forward such as focusing on high end EVs rather than consumer pickups while continuing invest heavily into research & development projects like autonomous driving tech and battery improvements .