From Nasdaq: 2024-04-27 03:59:00

Rivian (NASDAQ: RIVN) has struggled since its IPO, contrasting with Tesla’s success. Rivian lost $5.4 billion last year while Tesla generated over $15 billion in profits. Rivian aims to improve efficiency to match Tesla’s success, with a focus on a vertically integrated supply chain and increasing production capabilities at its Illinois factory.

While Rivian lags behind Tesla in profitability, improvements in efficiency are being made. Rivian’s fixed asset-turnover ratio has increased, signaling greater asset utilization and efficiency. Investing in a vertically integrated supply chain, like Tesla, could help Rivian reach break-even and replicate success at other factories in the future.

To reach Tesla’s level of success, Rivian must continue improving efficiency and focusing on increasing production capabilities. While the road ahead may be challenging, progress in efficiency, supply chain management, and production scaling could help Rivian become a key player in the EV market. Investors should keep an eye on Rivian’s developments before considering an investment.



Read more at Nasdaq: What Rivian Needs to Do to Become Tesla