Rivian (RIVN) Redefines EV Tech With InHouse Enduro Motor
It's been two years since Rivian Automotive launched the RIVN EV and there are already a lot of issues. The company has managed to stay strong, from production issues to focusing on the crowded auto market. Today the company has taken a big step forward with the introduction of a self-developed electric motor - Enduro.
To reduce costs in a highly competitive industry, Rivian pursued a vertical integration strategy, introducing a new dual engine and manufacturing parts in-house. CEO RJ Scaringe considers this event as important as the production of the company's first car.
CEO RJ Scaringe attributes Rivian's success in reducing costs to the strategic optimization of material, overhead and logistics costs. With a strong focus on increasing production, reducing costs, innovating and improving customer experience, Rivian hopes to achieve gross margin by 2024.
Technical difficulties
The enduro transmission integrates the transmission, drive train and engine, resulting in significant cost savings. Meanwhile, the price of the base-model Rivia dropped $8,000, raising the R1T pickup and R1S crossover to $74,800 and $79,800, respectively.
Additionally, the R1T's towing capacity is increased to 11,000 pounds, while the R1S's towing capacity is increased to 7,700 pounds through a new dual engine system. Off-road, the Enduro offers precise front-to-back power distribution. In addition, the range of the R1T has now been increased to 410 miles. The R1S is reportedly slated to go a little further at 390mph. These numbers represent a significant improvement over their four-engined versions.
For speed seekers, the dual motor supported by Rivian software propels the R1T and R1S from zero to 100 mph in just 3.5 seconds.
production and future prospects
The release of the Enduro system, originally planned for 2024, went into production in May 2023 for the R1T and R1S. Rivian has been using the Enduro as an Amazon delivery vehicle since early 2023.
This commitment to enduro is reinforced with the addition of another 620,000 square feet to the massive Rivia assembly plant. As a cornerstone of the sport of enduro, Rivian has set ambitious production targets of 52,000 units this year, more than double the best record of 2022.
The Enduro engine is expected to form the basis of the upcoming Rivian R2 vehicle platform, due out in 2026, which will target smaller, more fuel-efficient vehicles.
Financial considerations and future plans
For the second quarter of 2023, Rivian reported a loss of $1.08, below Zacks consensus estimate of a loss of $1.41 in the previous quarter and a loss of $1.89 per share. The company reported quarterly revenue of $1.12 billion, beating Zaks' consensus estimate of $1 billion and up from the $364 million reported in the previous quarter. In the second quarter, Rivian delivered 12,640 electric vehicles, up 59% sequentially and significantly more than the 4,467 electric vehicles in the corresponding quarter of 2022.
Rivian is actively looking for more innovative ways. Among their future initiatives is the launch of a "maximum size" battery pack this fall. This particular battery option is particularly suited to the enduro setup. It's estimated to offer an impressive 400 miles of range on a single charge. The premium trim option starts at $95,800 for those who would rather improve their enduro performance with a more powerful battery. It offers an attractive alternative to the $88,800 four-engine configuration, which offers a maximum range of 328 miles in its widest configuration.
The last word
Rivian's decision to manufacture its own motors not only proves its profitability, but also gives the company a unique position in the electric vehicle market. By winning and successfully implementing this innovation, Rivian seems to be well prepared for the future.
Rivian is currently at Zax Rank 3 (Retention). You can see today's full list of Zacks stocks #1 (Strong Buy) here .
Top ranked players in the automotive industry
Top-rated auto stocks include Gentex Corp GNTX, Commercial Vehicle Group CVGI, and Allison Transmission ALSN, all of which are #1 Zacks (strong buy).
Zacks consensus estimate for Gentex's 2023 earnings has been revised up 6 cents over the past 30 days. Zachs consensus estimate for CVGI's 2023 earnings per share has been revised up 8 cents over the past 30 days. Zacks consensus estimate for Ellison's 2023 earnings has been revised up 14 cents over the past 30 days.
Disclaimer: This article was written using Generative Artificial Intelligence. However, the author has reviewed, corrected, added, and rewritten portions of this content to ensure its authenticity and the accuracy of the information contained.
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