(The Epoch Times)—Amazon-backed electric vehicle manufacturer Rivian will be laying off a part of its workforce amid “challenging” economic conditions, the company said on Wednesday, sending its share price into a nosedive.
Rivian announced its Q4, 2023, and full-year results on Feb. 21, revealing that the company will be reducing its salaried workforce by roughly 10 percent. In an email to staff, CEO RJ Scaringe said that layoffs would be implemented on Thursday. “Our business is facing a challenging macroeconomic environment—including historically high interest rates and geopolitical uncertainty—and we need to make purposeful changes now to ensure our promising future,” he wrote, according to Business Insider.
The company told the outlet it employed 16,700 workers in total, which includes both salaried and hourly workers. In 2023, Rivian cut its workforce by 6 percent, which followed another 6 percent staff reduction implemented in the prior year.
Along with the layoffs, Rivian also announced that it expects to produce only 57,000 vehicles in 2024, far lower than the 81,700 units estimated by analysts polled by investment research firm Visible Alpha.
Following the announcement of workforce reductions and lower-than-expected 2024 production numbers, Rivian shares declined. At the end of Wednesday, the firm’s shares were at $15.39. By the end of Friday, shares fell to $10.07, a decline of almost 35 percent in just two days.
Year-to-date, shares have fallen by over 52 percent. Rivian’s $10.07 stock price is more than 90 percent less than the nearly $130 it was priced at back in November 2021.
The Amazon-backed EV maker’s share price collapse comes as many electric vehicle makers are readjusting expectations in the face of softer demand.
A Jan. 4 survey report from KPMG that polled 1,000 auto executives from 30 nations found that confidence in electric vehicles among automakers in the United States and other countries has dipped as many are concerned that their large bets on EVs may take longer to pay off.
“Just a year ago, executives were excited about the prospects for transforming the industry with new kinds of cars. Now, they remain optimistic, but they are more sober about how difficult it will be to manage the transition and preserve or increase profits,” it said.
While several news EV models are flooding the market, demand for the vehicles has “weakened,” KPMG stated while noting that some players may end up under “extreme pressure” as competition heats up.
In Rivian’s earnings release, CEO Scaringe admitted that the company will be facing “challenging macro-economic conditions” in the short term. As such, the firm is “aggressively focused on driving cost efficiency throughout the business.”
Dan Ives, managing director and senior equity analyst at Wedbush Securities, told the Los Angeles Times that Rivian’s vehicle projections for this year cast a “dark cloud around the story.”
“Cutting costs and headcount to reflect a softer environment and production issues … Rivian went from a Cinderella story to a horror show.”
Business Downgrade
Rivian was also hit with a downgrade on Friday, with UBS cutting its rating on the stock from “Buy” to “Sell.”
“We had been optimistic on [Rivian’s] product and brand ultimately winning out,” UBS analysts said in a note, according to Dow Jones Wire. However, “more tepid” demand for EVs now threatens the company, they wrote. The analysts cut their price target from $24 to $8.
Rivian’s current EV offerings, a full-size SUV and a pickup truck, start at around $70,000. UBS analysts noted that Rivian EVs were “high priced” and that there were risks to the company’s pricing and volume.
The EV maker plans to unveil its cheaper, next-generation EV R2 in March, which is expected to cost $45,000. However, UBS is not convinced it will have an immediate positive effect on the stock.
“Further out, [Rivian] growth is reliant on R2 … but we don’t believe production starts until late 2026, so meaningful financial impact isn’t until 2027—a long time to wait for a product the stock hinges on,” the note said.
A survey by Gallup last year showed that most Americans aren’t “completely sold” on EVs. Among poll respondents, only 12 percent said they were “seriously considering” buying an EV.
While 43 percent said they “might consider” such a purchase in the future, 41 percent stated they “would not buy” an EV.
Speaking to the Los Angeles Times, Jessica Caldwell, head of insights at Edmunds, said that “mass-market buyers have less income and a lot more questions.”
“We’ve been living in this wave of ‘Oh, EVs are great, they’re going to continue the accelerated growth and only going to get better,’ and now it seems like they’re (EV makers) hitting this reality point.”
Even though EV sales have seen growth over the past years, mass-market customers are not too taken with them due to issues like battery life, access to reliable charging stations, and vehicle range, she pointed out.
“It’s not always easy to set up a charger where you live … At the end of the day, for EVs to take off and become mass market, there needs to be major growth in infrastructure.”
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
