Rivian's struggles to overhaul its ordering system also reflect wider industry challenges. Inflation and supply-chain snarls have shredded financial forecasts and increased pressure on EV upstarts to reduce costs at a time when investors are closing their check books.
"The markets have closed to every company, good and bad. You have to hunker down and set your priorities, and do whatever it takes to get to the other side," said Daniel Ninivaggi, CEO at EV startup Lordstown Motors Corp., which this month sold its plant to Taiwanese contract manufacturer Foxconn as cash reserves plummeted.
Rivian said it consistently monitored the capital markets and had been planning for an increasingly difficult environment by "optimizing its product roadmap and operating expenses."
At $16 billion, Rivian boasts significantly more cash than Lordstown and other small EV startups, such as Canoo Inc., which this month issued a going-concern warning.
But Rivian burned around $1.2 million per vehicle it delivered in the first quarter and is estimated to spend a total of $7 billion in cash this year, according to Morgan Stanley analyst Adam Jonas.
"I definitely wouldn't put Rivian into the same basket as these other companies, but I think they have a high burden, and they need to show they can deliver," said Vitaly Golomb, a partner at investment bank Drake Star, who leads its EV and mobility practice and is also a Rivian investor and reservation holder.
While Rivian has told investors it had enough cash on hand to open its second U.S. plant for $5 billion in 2025, patience may be wearing thin.
"Since your IPO, the world has changed dramatically, investors just don't want to fund negative EBITDA growth companies in this environment," Jonas said on the company's most recent earnings call with investors, cutting off Rivian CFO Claire McDonough.
CEO RJ Scaringe and McDonough said the company would bring costs under control by simplifying its vehicle lineup and minimizing expenses.