Rivian And Lordstown: Two Different EV Startup Stories

The electric vehicle industry continues to evolve with Tesla Inc TSLA still being the undebatable leader of the show. With legacy automakers such as Ford Motor F and General Motors GM joining Tesla by entering its supercharging network, some startups like Rivian Automotive Inc RIVN who followed their footsteps are succeeding to catch up while some like Lordstown Motors RIDE called it quits. 

Lordstown Is Done

After a recent warning that this could happen, the struggling Lordstown Motors Corp just filed for bankruptcy while also suing former partner Foxconn for setting out to destroy its business. After a high-profile agreement with the world’s biggest contract electronics manufacturer, best known for making iPhones for Apple AAPL, fell apart, Lordstown CEO Edward Hightower stated that the automaker had no choice. Lordstown accused the Taiwanese tech firm of fraud as well as for not delivering its promise to invest in the company, repeatedly failing to execute on the agreed-upon strategy. Back in 2021, when Foxconn bought Lordstown Motors’ Ohio production facility that Lordstown previously purchased from General Motors in 2019, Foxconn also commited to handle the manufacturing of Lordstown’s electric pick-ups at the facility while also making further investments, given that specific milestones were met. Earlier this year, Lordstown already disclosed that Foxconn decided to back out of making further investments as it claimed Lordstown did not deliver its end of the agreement.  

Rivian’s New SUV Crossover

Meanwhile, the Irvine, California-based EV startup that managed to beat Tesla in being the first to bring an electric pickup to the road continues with its ambitious plans.

As part of its focus on the R2 models, InsideEVs reported that Rivian will reveal its new lower-priced R2 midsized SUV Crossover EV early next year. The R2 SUV Crossover, that still does not have an official model name, is expected to enter production in 2026. Meanwhile, Rivian’s Normal factory that has a 150,000 vehicle capacity, will continue manufacturing the R1 with production expected to reach 85,000 units in 2026, while producing produce 65,000 of Electric Delivery Vans that for now, Rivian is making exclusively for its shareholder, Amazon.com Inc AMZN. This means that the maximum capacity of the Normal facility will be reached and therefore, R2 vehicles will likely be made at Rivian’s new-to-be-built Georgia manufacturing facility.

Rivian’s Results Are Improving

Although Rivian delivered only 24,337 vehicles last year, including R1T pickup truck, R1S SUV and EDV van, which is below its 25,000 forecast for 2022. In February, Rivian management stated it expects to produce 62,000 vehicles this year. Its 2024 production plans are even better, predicting it will significantly surpass 2023 figures, as they include the delivery of 85,000 R1S SUVs.

In April, Rivian CFO Claire McDonough also guided that Rivian will be making a profit next year, forecasting a 2026 production of 200,000 units of the new R2 with that figure doubling each year, starting with 400,000 units in 2027.

Although it made a charging agreement with Tesla which will provide its consumers with the biggest network in the U.S. and also the fastest and most-reliable chargers in country, Rivian still plans to continue building its own charging network which would bring in additional revenue.

Two EV Startup Tales That Couldn’t Be Any More Different

Rivian brought its two EV promises to life, Lordstown didn’t. Rivian got the support from Amazon, while Lordstown chose a partner that did not live up to its expectations. Lordstown’s EV story has ended, while Rivian’s is still being written.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.