Seems to me that they got it right and made it clear to everyone what happened. Windings, copper, quantity mistake. Only an actual engineer could explain this in a way that most people wouldn’t understand but go ahead and pat yourself on the back.
It’s like hearing an engineer talk about a business idea. Edit: the lesson is to respect each others’ areas of expertise. Don’t berate someone for not having knowledge in your area of expertise.
Rivian CAN find other sources of Copper Windings, but they would have to test and validate that it works the same and had similar manufacturing quality. In 1995 the Kobe Earthquake disrupted supply of Steel that GM used in all its engines. They had to quickly validate a new supplier to avoid complete shutdown.
Guys this excuse is BS, if it was true they would have Produced less than they delivered. Based on Q3 results below they had a surplus of 3,000 vehicles they could have delivered. Plus other inventory they have on hand. Production: 13,157 vehicles produced Deliveries: 10,018 vehicles delivered. Rivian’s “old” reservations finished end of Q3, that’s the ones that had locked in older prices and NEEDED to take delivery before end of Q3 or lose that price. People did not take their vehicles and this is why they fell short on estimates. The vehicles are too expensive. Rivian has dragged the initial 112k reservations for 2 3/4 years. 2022- 20,500 deliveries 2023- 50,200 deliveries 2024 - 38k (up to Q3) Incl in these is about 15k EDV van deliveries, Plus new reservation/ deliveries where ppl paid the higher pricing. At a guess Rivian lost about 30k initial reservations. They already forecasting lower Q4 deliveries, my guess same BS excuse about part shortages. I’m not saying they don’t have an issue with parts / components, I’m saying it’s got nothing to do with sales/ deliveries. It’s demand issues. RJ needs to go. He’s been spending money and making poor decisions.
I’d agree if it wasn’t for Amazons involvement for their own vehicles. If anything Amazon would Buy them to protect their investment in their delivery trucks.
The problem isn't a procurement issue its the cost of vehicle being so high and aren't selling. They have a surplus of vehicles and a $30k+ loss per vehicle problem. They need an excuse to explain the 4th quarter loss (vs the proclaimed turn to profit) that's obviously coming.
Rivian must FIRE the idiot who is responsible for this "ERROR". This is impactful to all investors as well. Incompetence at this level must not be tolerated. This error makes Rivian looks like it's being run by a bunch of armatures. Get rid of the idiot(s) now!
Rivian's Q3 production fell nearly 19.3%, while deliveries were down 35.6% compared to the same period last year. The automaker produced 13,157 vehicles in Q3 and delivered 10,018 units. That's a big drop from the record 16,304 EVs it produced and 15,564 deliveries it made in the same quarter last year.
It’s hard to believe this explanation from Rivian. They produced 50k cars last year. If they were to produce more cars this year, they should atleast order the same amount of copper right? Why did they order less!
It's doubtful Rivian intensionally ordered vastly less coper windings. It possible somebody got a decimal point off on the order where causal proofreading had it appear the number was valid.
This mistake tells me more than just a mistake was made. The copper is a reoccurring order, so there wouldn’t have been a mistake if 25% more than needed had been ordered. The person who ordered it was trying to minimize the cost by being perfect. Good luck with that strategy.
They could use the opportunity to redesign their electric motors to the Bedini type motors (window motors), and increase the efficiency to over 100%, to recharge the batteries while driving or when parked. Eventually car companies will learn.
Yo GloomNDoomBerg.... Keep that SAME (kid's gloves)ENERGY when you cover TESLA during the Quarterly earning. We know you wont do it. but we all see your Bias and the narrative that you spin on Tesla
That's a big jump to conclusions, could be a white guy in accounting, how do you know? Also, it's likely just an excuse, from reports they have plenty of stock.
I really love hearing MBAs talk about engineering. It’s like a child trying to explain how physics works
"Electromechanical Field"
Seems to me that they got it right and made it clear to everyone what happened. Windings, copper, quantity mistake. Only an actual engineer could explain this in a way that most people wouldn’t understand but go ahead and pat yourself on the back.
100% ; these Bloomberg host are absolutely terrible
It’s like hearing an engineer talk about a business idea.
Edit: the lesson is to respect each others’ areas of expertise. Don’t berate someone for not having knowledge in your area of expertise.
People have no idea how their world works.
Rivian CAN find other sources of Copper Windings, but they would have to test and validate that it works the same and had similar manufacturing quality.
In 1995 the Kobe Earthquake disrupted supply of Steel that GM used in all its engines. They had to quickly validate a new supplier to avoid complete shutdown.
1:56 Copper Windings are used on the STATOR not the Rotor (I think he tried to correct himself).
The are used on the armature(rotor) on some motors
It can be both for induction motors
Not relevant
Guys this excuse is BS, if it was true they would have Produced less than they delivered. Based on Q3 results below they had a surplus of 3,000 vehicles they could have delivered. Plus other inventory they have on hand.
Production: 13,157 vehicles produced
Deliveries: 10,018 vehicles delivered.
Rivian’s “old” reservations finished end of Q3, that’s the ones that had locked in older prices and NEEDED to take delivery before end of Q3 or lose that price. People did not take their vehicles and this is why they fell short on estimates. The vehicles are too expensive. Rivian has dragged the initial 112k reservations for 2 3/4 years.
2022- 20,500 deliveries
2023- 50,200 deliveries
2024 - 38k (up to Q3)
Incl in these is about 15k EDV van deliveries, Plus new reservation/ deliveries where ppl paid the higher pricing. At a guess Rivian lost about 30k initial reservations.
They already forecasting lower Q4 deliveries, my guess same BS excuse about part shortages. I’m not saying they don’t have an issue with parts / components, I’m saying it’s got nothing to do with sales/ deliveries. It’s demand issues. RJ needs to go. He’s been spending money and making poor decisions.
That’s correct 👍
thank you. great post. the cars are too expensive. demand is tapped out.
“how could this have happened? we forgot to order the batteries. oh well, at least we have good photoshoots and dei.l
Exactly... The company is over, unless they get more money from Amazon and VW.
Thanks Ed for breaking the story and keeping us informed
I call BS latest.Don't have buyers for the vehicles.They can produce more than they can sell.
This guy just learned one thing and calling out a mistake. 😀
How many cars does Rivian make? Surely they must be able to find a different copper supplier for those.
It’s not a good idea to randomly change materials. Need to qualify critical parts for safety and reliability reasons.
Interview or attempt at an SNL parody: you decide.
+
I think it’s hilarious they removed 1.6 miles of copper wire from their refresh models and needed that copper later on 😅
Why is that “hilarious“?
Rivian is a good company with great products. This is a good buy right now.
Rivian will fail….they have been making vehicles for as long as Tesla but are nowhere near profitability and never will be…RIP
I’d agree if it wasn’t for Amazons involvement for their own vehicles. If anything Amazon would Buy them to protect their investment in their delivery trucks.
The problem isn't a procurement issue its the cost of vehicle being so high and aren't selling. They have a surplus of vehicles and a $30k+ loss per vehicle problem. They need an excuse to explain the 4th quarter loss (vs the proclaimed turn to profit) that's obviously coming.
Electro magnetic field not mechanical
Not relevant nor does anyone care
@@rcpmacI do and so do 5 others! None care or like your comment tho. 😂
Rivian must FIRE the idiot who is responsible for this "ERROR". This is impactful to all investors as well. Incompetence at this level must not be tolerated. This error makes Rivian looks like it's being run by a bunch of armatures. Get rid of the idiot(s) now!
100%
They have a demand problem due to weakening consumers. This story is a non-factor in the big picture of Rivian.
What evidence do you have for this?
@@ankitrko7 Delivery number dipping more and more below production numbers
Rivian's Q3 production fell nearly 19.3%, while deliveries were down 35.6% compared to the same period last year. The automaker produced 13,157 vehicles in Q3 and delivered 10,018 units. That's a big drop from the record 16,304 EVs it produced and 15,564 deliveries it made in the same quarter last year.
Yeah. Something’s been going on at Rivian all right… A lack of cost reduction!
This is an example of “Prototypes are easy. Production is hard!
The copper bean counter is getting canned
It’s hard to believe this explanation from Rivian. They produced 50k cars last year. If they were to produce more cars this year, they should atleast order the same amount of copper right? Why did they order less!
It's doubtful Rivian intensionally ordered vastly less coper windings. It possible somebody got a decimal point off on the order where causal proofreading had it appear the number was valid.
This mistake tells me more than just a mistake was made. The copper is a reoccurring order, so there wouldn’t have been a mistake if 25% more than needed had been ordered. The person who ordered it was trying to minimize the cost by being perfect. Good luck with that strategy.
Better buy Essex stock 😂
I guess Rivian could contact the other copper customers and try to purchase from them .... (at extra cost)?
They could use the opportunity to redesign their electric motors to the Bedini type motors (window motors), and increase the efficiency to over 100%, to recharge the batteries while driving or when parked. Eventually car companies will learn.
Yes! A bedini motor, with backup stirling motor range extender😂🙄😎
You cant be that incompetent with your math.🤦
Journalists lecturing us about mistakes…
That’s why you want to find your suppliers in China.
Get out while you can !
Regardless they are not selling and stock is building up. Copper is not the issue.
1:44 proof these DoomBerg Analysis have no business covering the subject EVs!
Stay in yo lane and only report on Legacy Auto
How big was the error? A factor of 10, 5, 2?
That was dumb for Rivian to do.
When you have an overabundance of vehicles in production that nobody wants...
RIVIAN arent these the cars that are almost always totalled in any typrnof accident ? lol pass.
ooops. the math should be simple
Yo GloomNDoomBerg.... Keep that SAME (kid's gloves)ENERGY when you cover TESLA during the Quarterly earning.
We know you wont do it. but we all see your Bias and the narrative that you spin on Tesla
White Eric Lewis William Taylor Matthew
Really not a big deal. The vehicles are crazy expensive and won't sell much.
They can’t meet orders. Their is a waiting list
The issue is EDI, you hire base on people rase insyead of merit, there u go.
Is that supposed to be English?
That's a big jump to conclusions, could be a white guy in accounting, how do you know? Also, it's likely just an excuse, from reports they have plenty of stock.
nerds out nerding each other.
NEVER trust an 🇺🇸 start-up company. For these people that bought one of these 🚗 will soon have one expensive 🗞️ weight...