EV producer Rivian Automotive Inc RIVN has reportedly laid off round 20 staff, together with key members from its long-range battery cell improvement group.
What Occurred: Amongst these terminated is Victor Prajapati, a former senior supervisor at Tesla Inc. TSLA, who led Rivian’s in-house battery cell improvement, as reported by The Data, citing sources conversant in the matter.
The layoffs occurred on Wednesday and predominantly impacted the corporate’s analysis and improvement group devoted to future battery applied sciences.
Rivian at present sources its battery cells from South Korea’s Samsung SDI and assembles them into packs at its facility in Regular, Illinois.
A Rivian spokesperson confirmed the layoff to Benzinga and mentioned that the layoff affected lower than 8% of the corporate’s complete battery group. Nonetheless, the spokesperson declined to touch upon Prajapati’s layoff specifically or give absolutely the variety of employees laid off.
“Whereas we place a really excessive worth on the cell engineering competence now we have constructed at Rivian, we’re focusing the group on R2 and its outlined packages,” the spokesperson mentioned whereas including that the corporate will pause new cell improvement in-house.
As a substitute, Rivian will concentrate on rising the cell chemistry group, which is able to work intently with cell manufacturing companions, and on unveiling its R2 platform, in accordance with the spokesperson.
Monetary Efficiency: Rivian reported third-quarter income of $1.337 billion and a quarterly lack of $1.19 per share, surpassing analyst estimates of $1.32 per share. The corporate additionally raised its full-year production guidance to 54,000 autos, a rise of two,000 models from its earlier forecast.
In the course of the third-quarter earnings name, CFO Claire McDonough introduced that R2 platform manufacturing would begin in 2026, with product unveilings anticipated in early 2024. The R2, whereas retaining the model’s essence, might be extra compact and obtainable at a lower cost level.
“There’s an excessive vacuum of selection we really feel within the kind of $45,000 to $50,000 value vary for midsize SUVs,” Rivian CEO R.J. Scaringe mentioned, highlighting the restricted choices and Tesla’s dominance within the EV market inside that value vary.
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