Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Tesla Rival Doing All Hard Things At Once - IPO, New Plant And 3 Models

Tesla Rival Doing All Hard Things At Once - IPO, New Plant And 3 Models

When Rivian plants a charger in an electron desert like North Dakota, the revenue in return flows through a thicker pipe than it does for a charging empire that's only selling the electricity.
If -- or, more likely, when -- all the business books start to drop about Rivian Automotive Inc., at least one should be titled: Do All the Hard Things at Once. The young company is currently trying to finish a factory and three different vehicles, while planning a road trip to a Wall Street IPO. Apparently, Chief Executive Officer R.J. Scaringe was still getting a little too much sleep, because Rivian two weeks ago announced a plan to build its own charging network as well, ala Tesla.

The decision, which Scaringe has hinted at for years, comprises at least 3,500 fast chargers at 600 sites and at least 10,000 slower-charging "waypoints" at campsites, motels, hiking trailheads, and the like -- all installed by 2024. It's a hugely expensive capital project: The hardware alone in building a fast-charging site can cost up to $320,000, according to one study, to say nothing of maintenance and other soft costs. In short, Rivian's go-it-alone strategy is a quiet indictment of U.S. infrastructure: What's out there at the moment, apparently, is not nearly enough.

Tesla opted for the same kind of proprietary network, but that was nine years ago. The non-Tesla charging map has grown denser in the time since, but pins are still thin beyond urban centers, and the center of the country is blanketed with electron deserts.

At the moment, Tesla has 9,723 fast-charging cords in the U.S., according to the latest Energy Department tally. The other networks combined have just 7,589 outlets for public charging, and those are far less widely scattered. The Tesla club is covered in Millinocket, Me., Athens, Ala., and Casper, Wyo. -- all places where Ford's juiced-up new Mustang Mach-E may struggle to run free. While this is a challenge for Ford, it's a bigger obstacle for Rivian's "Electric Adventure Vehicles," ostensibly headed to places more wild than the Santa Monica farmer's market.

There's good reason for the anemic charging map. The microeconomics for a public charging network are still kind of brutal. Profits won't appear without a lot of EV traffic; EVs won't appear without a lot of chargers. But on a micro-micro level, there's another variable in the equation: Chargers sell cars. Elon Musk saw that clearly a decade ago. When Rivian plants a charger in an electron desert like North Dakota, the revenue in return flows through a thicker pipe than it does for a charging empire that's only selling the electricity.

Indeed, a look at the Rivian map colors its sales ambitions. It has a slew of chargers planned for Alaska, Hawaii, and the Upper Peninsula of Michigan. Even Prince Edward Island and Nova Scotia will see stations. "We can be really creative in terms of locations," Scaringe told TechCrunch in December, "so it can allow us to get to places that are very specific and unique to Rivian."

What's more, Rivian plans to hand Amazon.com the keys to 100,000 delivery vans in the coming decade, including 10,000 by the end of next year. No doubt, the retail giant would like to deploy (and charge) those rigs widely. Meanwhile, non-Rivian vehicles will be able to use the company's slower chargers, another potential revenue stream. "Over-demand is a nice problem to have," says BloombergNEF analyst Ryan Fisher, and there's value in locking up prime charging locations before EVs infiltrate the country's more remote places, he adds.

The incumbent auto industry hasn't been as adventurous, but it has yet another variable in the equation: gas-powered revenue. These cars can still sell vehicles in places such as North Dakota, where chargers are sparse. As such, the industry has largely decided to jury-rig its own charging networks, essentially cobbling together a patchwork of interoperability agreements with third-party networks. Ford Motor Co., for example, connected in 2017 with Electrify America, the charging network Volkswagen established as part of the settlement of its Dieselgate emissions cheating scandal. (The public charging networks became even more important this week to Mach-E owners, as Ford stopped selling its $799 home chargers because some weren't working properly.)

Finally, Rivian has to think carefully about the long haul -- specifically the big, squishy calculus of brand value. The company has spent 12 years crafting the capital behind its name, and almost every step has been deliberate -- from producing seven-minute snowboarding films to popping up in an Aspen gondola for an impromptu interview. It's also hiring "guides" who will be personally assigned to liaison with individual buyers.

Now, on the cusp of putting product in the wild, it would certainly be easier and cheaper to outsource charging to some third-party plug in a motel parking lot, but that would be out of step with the company's approach to date. Charging will be a huge part of the Rivian's UX, arguably as important as the lights, the acceleration, and the nifty "camp kitchen" that slides out from under the pickup bed. Apparently, to Scaringe and company, the reward ~CHECK~ the potential savings of skipping the proprietary network -- isn't worth the risk.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×