When Jeff Wells placed a reservation for a Rivian R1T pickup in early 2019, he was one of the first in line for a truck from the Amazon.com Inc-backed electric vehicle startup that at the time promised to tap in to a niche not served by other automakers.
The complaints mounted after Rivian Automotive Inc in late April said it was changing the production sequence of vehicles, prioritizing those with specific interior and exterior color and wheel options. Rivian's delivery headaches have not drawn the same attention as the California company's slashed production plans or its messy communication of vehicle price increases, which it first announced across the board, but later scrapped for existing reservation holders following backlash.While all automakers are struggling with global supply-chain snarls, including a semiconductor shortage and rising raw- materials costs, startups like Rivian have less room to get things right.
"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, chief executive at EV startup Lordstown Motors Corp, which this month sold its plant to Taiwanese contract manufacturer Foxconn as cash reserves plummeted.
"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.