Rivian Has No Choice; It Has to Find a Way to Reduce Costs
In some ways, Rivian (NASDAQ: RIVN) is a smashing success. In others, it is still a risky work in progress. This year, the automaker is embarking on a major cost-cutting initiative that will actually take precedence over expanding its production. That's an interesting downshift for the company, but one that makes total sense if you take a second to examine its financial performance.
It is not easy building a manufacturing company from scratch. It's not cheap, either. Rivian had to create a very complex product (a road-safe vehicle) and the means to produce it at scale (a large factory). To the company's credit, it achieved each of these goals, with production hitting roughly 57,000 electric vehicles (EVs) in 2023. Over 70,000 of its vehicles are now on the road today.
Image source: Getty Images.
Source Fool.com
