Rivian, Lucid, The Cybertruck -- August 18, 2024

Locator: 48451EVS.

Some months ago, I said I wasn't going to follow EVs any more except when there were some particularly newsworthy stories. What can I say? The EV story is absolutely fascinating. 

The most fascinating story this past week: Rivian shuts down Amazon van production due to shortage of parts. The supply chain shortage excuse is getting a bit long in the tooth. What bothered me most was the fact there was no transparency: 

• what parts?
• are the parts unique to the Amazon van, or does it include parts found across Rivian's platforms?
• how did it happen?
• expected date to begin production?

And then this: 

Rivian has amassed a surplus of the delivery vans at the plant that are awaiting delivery to Amazon. The carmaker has a deal to supply the company with 100,000 vans by the end of the decade, and about 15,000 are already in service in the U.S. 

Amassed a surplus of the delivery vans at the plant that are awaiting delivery to Amazon. 

Why in the world would a start-up "amass a surplus of delivery vans" apparently already sold to Amazon and expected to arrive during their slow period. 

“We’re aware that Rivian encountered short-term production issues this month, and we don’t expect it to impact us,” an Amazon spokesperson said in an emailed statement.  

Rivian’s vans account for a fraction of the overall fleet used to deliver packages for Amazon, which taps gig workers who drive their own vehicles, as well as traditional couriers such as UPS.

Rivian Chief Financial Officer Claire McDonough has said the carmaker expects Amazon to take fewer deliveries during the fourth quarter, consistent with the online merchant’s seasonal pattern when it focuses on the holiday sales rush. 

"... don't expect it to impact us." Why wouldn't they simply say the impact won't affect them at all.

There just seem to be too many "excuses." 

Two thoughts: either this becomes a non-story (most likely) or there's more to this story than either Rivian or Amazon are letting on.

So, what else with regard to Rivian? This link seems to be clickbait with all the ads, but it turns out to be quite a good article. One wonders to what extent AI was used to write the article. By the way, when a reporter acknowledges that AI was used in writing the article, the reporter is telling us the story was written by ChatGPT and was proofread by the writer before posting.

Apparently the match-ups between Rivian and Mercedes and others didn't work because of issues with incompatible electronic control units (ECUs). Rivian wants to keep everything in-house -- the Apple model -- whereas the hoped-for partners did not. Which, of course, on the surface doesn't make sense. That would seem to be one of the things that would make Rivian appealing.

My hunch: like Apple, the Rivian folks are very, very difficult with whom to work, unable to compromise, which fits the Apple narrative. 

From the linked article: 

For Rivian, maintaining control over its network architecture isn’t just important—it’s essential. The company’s entire strategy revolves around having a tightly integrated system where every component works in harmony. The level of control allows Rivian to offer features like seamless over-the-air updates and a unified user experience, which are key selling points for the brand. Much like how Rivian is straying from adding Apple CarPlay or Android Auto to the interior, the brand experience is paramount. 

****************************
Lucid

Benzinga has an interesting take on Lucid. Link here.

With regard to clickbait, this site is even worse, but we press on. 

 

********************************
Investing

Obviously I don't hold any positions in any of the EV companies, or any auto companies at all for that matter. 

Having said that, two observations:

Tesla is not a car company. It's an energy company specializing in batteries and regulatory credit sales. 

I may need to re-think investing in Rivian. Seriously.

Rivian and Apple: lots and lots of similarities. 

**********************************
Southlake, TX

Lots and lots of Teslas in the Southlake, Texas, neighborhoods, and Southlake is not even the swankiest suburb in the state.

Tesla sedans everywhere and now Cybertrucks. They are huge. They seem like the perfect vehicle for fighting wars in Iraq, if the Mideast would a) put in a few thousand charging units; and, b) pave over the sand so the incredibly heavy Cybertrucks could actually off-road. 

Cybertrucks are clearly bought to "show off." I guess it's called "prestige" these days. Whatever.

Exhibit A. 

Benzinga said this, not me: