

Get in the KNOW
on LA Startups & Tech
X
Courtesy of Rivian
Rivian Misses Earnings Estimates Again As It Fights To Deliver More Electric Cars
Samson Amore
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
Rivian missed earnings expectations in its first quarter as production constraints and supply chain delays continued to slow down vehicle deliveries.
The electric automaker reported a first quarter net loss of $1.6 billion and posted first quarter revenue of $95 million, compared to expected revenue of roughly $130.5 million.
The numbers were an improvement over the $2.5 billion net loss the company reported last quarter and barely beat analysts' loss expectations—enough to boost its stock by roughly 8% in after-hours trading Wednesday.
In a shareholder letter Wednesday, Rivian said it expects to continue burning cash as it ramps up production.
“This dynamic will continue in the near term, but we expect it will improve” as production outpaces labor and overhead costs, the company said.
Rivian built 2,553 vehicles and delivered 1,227 in the first quarter, according to its report, bringing the total number of vehicles delivered to 2,148. The company needs to increase production by ten times if it’s to hit its revised forecast of 25,000 vehicles this year and 150,000 vehicles per year by 2023.
The direct-to-consumer auto startup said as of May 9 it received over 90,000 orders in the U.S. and Canada for its R1 vehicle. It also has another order to supply Amazon with 100,000 commercial electric delivery vans.
But the company has built fewer than 5,000 cars since it started production, a small figure for a company that plans to one day dominate at least 10% of the global auto market.
“Of course our focus as an organization for 2022 is to get more R1s and EVs on the road,” Rivian CEO R.J. Scaringe said during the company’s earnings call. “The majority of our time is focused on ensuring our teams are driving towards ramping [up] production and deliveries to customers.”
In a bid to compensate for slower-than-expected sales, Rivian earlier this year tried to raise the price of its vehicles by 20%, but buyers quickly objected and one shareholder sued. The company later backtracked.
To meet production goals, Rivian said it’s ramping up hiring at its plant in Normal, Ill. and planning to break ground on a new $5 billion, 2,000-acre factory outside of Atlanta, Ga., which came with a hefty $1.5 billion tax break from the local government. That factory is expected to create 7,500 local jobs. Rivian said it will produce 400,000 cars annually once it reaches full capacity.
Between its planned Georgia factory and its plant in Illinois, Rivian expects to produce 600,000 cars each year when it's fully up and running.
Those plans have failed to impress Rivian’s big-name shareholders, many of whom have sold off significant portions of their stock, including Ford, which sold 8 million Rivian shares this week – though it still maintains a stake. Ford originally had plans to develop an electric Lincoln SUV with Rivian, but the deal fell through last November.
Amazon backed Rivian in 2019 and said in its April earnings report it had taken a $7.6 billion loss on its investment.
In the last three months, Rivian’s stock tanked more than 60%, and since its IPO in November 2021 the stock is down over 75%.
From Your Site Articles
- Ford Sells 8M shares of Rivian - dot.LA ›
- Rivian Shares Spike After George Soros' Investment - dot.LA ›
- Rivian Stock Tanks on Missed Earnings Expectations - dot.LA ›
- Rivian Delays SUV Delivery - dot.LA ›
- Could Rivian Layoffs Actually Signal Progress? - dot.LA ›
Related Articles Around the Web
Samson Amore
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
https://twitter.com/samsonamore
samsonamore@dot.la
Quibi Will Shut Down After Failing to Find a Buyer
04:10 PM | October 21, 2020
Image courtesy\u00a0of Quibi
Less than seven months after launching, the high-flying streaming service Quibi has shut down.
Despite a sold-out advertising slate, deals with A-listers and a $1.75 billion war chest from high-profile investors the former Disney executive and founder Jeffrey Katzenberg couldn't make the short-form mobile video platform stick.
Katzenberg called investors on Wednesday to tell them Quibi would shut down, ending one of Hollywood's most high-profile streaming endeavors by a storied executive. The Wall Street Journal first reported the news.
Shortly after, Katzenberg and the company's CEO, Meg Whitman, published a post on Medium acknowledging the news and blaming it on a combination of the pandemic and the execution.
"Quibi is not succeeding," they wrote. "Likely for one of two reasons: because the idea itself wasn't strong enough to justify a standalone streaming service or because of our timing."
The two said they would return cash to shareholders and look for buyers for their remaining assets.
"While the result was not what any of us wanted, we did accomplish a number of things and we are very proud of what the talented Quibi team has built with the blood, sweat, and tears that they poured into this business over these past two years," they wrote.
Katzenberger had tried to sell Quibi to tech giants such as Apple, Facebook and NBCUniversal, The Information reported. All passed. He also considered taking the company public to raise additional funds, according to the Wall St. Journal. That didn't pan out either.
"Our failure was not for lack of trying; we've considered and exhausted every option available to us," Katzenberg and Whitman wrote.
Launched on April 6, with dozens of short-form original series, Quibi executives said they did not intend to compete with Netflix or Hulu. Instead, they hoped targeted viewers on their mobile devices for short-form content, aiming to catch them while they were waiting in line or looking for a quick entertainment fix in between other moments. But the company failed to catch on and faced fierce competition by YouTube, Facebook and other short-format video platforms that millennials and Gen Z have already adopted.
Katzenberg had previously blamed lackluster user reach on the pandemic and the stay-at-home culture it created for putting an end to the commutes and time spent waiting in line where they hoped to meet their audience.
"The circumstances of launching during a pandemic is something we could have never imagined but other businesses have faced these unprecedented challenges and have found their way through it. We were not able to do so," he and Whitman wrote.
Another disadvantage was the astronomical production costs for creating the content, were reported to be up to $100,000 each minute. Quibi had signed on stars like Chrissy Teigen, Tyra Banks and Tom Cruise.
But with no hit show or catalog of familiar flicks, Quibi struggled. Plus, it arrived in the middle of the pandemic when mobile users were stuck at home, not waiting in lines or riding public transit.
Quibi attracted investment from some of Hollywood's biggest players including the Walt Disney Company, 21st Century Fox, Metro-Goldwyn-Mayer Studios Inc., NBCUniversal, Viacom Inc and Sony Pictures Entertainment Inc.
From Your Site Articles
- Quibi CEO Meg Whitman Sees a Renaissance in Hollywood - dot.LA ›
- Quibi May be Struggling With Advertisers - dot.LA ›
- Unboxing Quibi: Inside the New Mobile Streaming App and Its Shows ›
- Pegasus Tech Ventures' Anis Uzzaman On Why Quibi is Here to Stay ›
- Quibi Is Here: Will It Last? - dot.LA ›
- Learning from Quibi's Quick Collapse - dot.LA ›
- Why Did Quibi Fail? - dot.LA ›
- Jeffrey Katzenberg’s WndrCo Raising New Venture Fund - dot.LA ›
Related Articles Around the Web
Read moreShow less
Rachel Uranga
Rachel Uranga is dot.LA's Managing Editor, News. She is a former Mexico-based market correspondent at Reuters and has worked for several Southern California news outlets, including the Los Angeles Business Journal and the Los Angeles Daily News. She has covered everything from IPOs to immigration. Uranga is a graduate of the Columbia School of Journalism and California State University Northridge. A Los Angeles native, she lives with her husband, son and their felines.
https://twitter.com/racheluranga
rachel@dot.la
Here's How To Get a Digital License Plate In California
03:49 PM | October 14, 2022
Photo by Clayton Cardinalli on Unsplash
Thanks to a new bill passed on October 5, California drivers now have the choice to chuck their traditional metal license plates and replace them with digital ones.
The plates are referred to as “Rplate” and were developed by Sacramento-based Reviver. A news release on Reviver’s website that accompanied the bill’s passage states that there are “two device options enabling vehicle owners to connect their vehicle with a suite of services including in-app registration renewal, visual personalization, vehicle location services and security features such as easily reporting a vehicle as stolen.”
Reviver Auto Current and Future CapabilitiesFrom Youtube
There are wired (connected to and powered by a vehicle’s electrical system) and battery-powered options, and drivers can choose to pay for their plates monthly or annually. Four-year agreements for battery-powered plates begin at $19.95 a month or $215.40 yearly. Commercial vehicles will pay $275.40 each year for wired plates. A two-year agreement for wired plates costs $24.95 per month. Drivers can choose to install their plates, but on its website, Reviver offers professional installation for $150.
A pilot digital plate program was launched in 2018, and according to the Los Angeles Times, there were 175,000 participants. The new bill ensures all 27 million California drivers can elect to get a digital plate of their own.
California is the third state after Arizona and Michigan to offer digital plates to all drivers, while Texas currently only provides the digital option for commercial vehicles. In July 2022, Deseret News reported that Colorado might also offer the option. They have several advantages over the classic metal plates as well—as the L.A. Times notes, digital plates will streamline registration renewals and reduce time spent at the DMV. They also have light and dark modes, according to Reviver’s website. Thanks to an accompanying app, they act as additional vehicle security, alerting drivers to unexpected vehicle movements and providing a method to report stolen vehicles.
As part of the new digital plate program, Reviver touts its products’ connectivity, stating that in addition to Bluetooth capabilities, digital plates have “national 5G network connectivity and stability.” But don’t worry—the same plates purportedly protect owner privacy with cloud support and encrypted software updates.
5 Reasons to avoid the digital license plate | Ride TechFrom Youtube
After the Rplate pilot program was announced four years ago, some raised questions about just how good an idea digital plates might be. Reviver and others who support switching to digital emphasize personalization, efficient DMV operations and connectivity. However, a 2018 post published by Sophos’s Naked Security blog pointed out that “the plates could be as susceptible to hacking as other wireless and IoT technologies,” noting that everyday “objects – things like kettles, TVs, and baby monitors – are getting connected to the internet with elementary security flaws still in place.”
To that end, a May 2018 syndicated New York Times news service article about digital plates quoted the Electronic Frontier Foundation (EFF), which warned that such a device could be a “‘honeypot of data,’ recording the drivers’ trips to the grocery store, or to a protest, or to an abortion clinic.”
For now, Rplates are another option in addition to old-fashioned metal, and many are likely to opt out due to cost alone. If you decide to go the digital route, however, it helps if you know what you could be getting yourself into.
From Your Site Articles
- 8 Alternatives to Uber and Lyft in California - dot.LA ›
- Automotus Will Monitor Santa Monica's New Drop-Off Zone - dot.LA ›
- Metropolis CEO Alex Israel on Parking's Future - dot.LA ›
Related Articles Around the Web
Read moreShow less
Steve Huff
Steve Huff is an Editor and Reporter at dot.LA. Steve was previously managing editor for The Metaverse Post and before that deputy digital editor for Maxim magazine. He has written for Inside Hook, Observer and New York Mag. Steve is the author of two official tie-ins books for AMC’s hit “Breaking Bad” prequel, “Better Call Saul.” He’s also a classically-trained tenor and has performed with opera companies and orchestras all over the Eastern U.S. He lives in the greater Boston metro area with his wife, educator Dr. Dana Huff.
steve@dot.la
RELATEDTRENDING
LA TECH JOBS