Rivian: Powering Up or Losing Charge in the EV Market?

In November 2021, Rivian went public in one of the largest IPO's in American history after five years of development in "stealth mode." Backed by the likes of Amazon and Ford Motor Company, Rivian was flush with cash, in spite of its lack of revenues and a meager track record of delivering just 156 trucks. Within a year, Rivian found itself in a difficult bind as it hemorrhaged cash and faced operational and production difficulties — one of which is the shortage of batteries to support vehicle development. In addressing this issue, which has both near-term and strategic ramifications, should Rivian aim to build battery technologies in-house or contract out such a specialized manufacturing component to focus on its existing core competencies in vehicle design and assembly? Perhaps a "compromise" between the extreme choices is possible? In this case, students will learn about the emerging electrical vehicle industry and Rivian, as well as the strategic choices that the nascent EV truck company faces. Students will be challenged to think about the competitive landscape — peers, incumbent giants, newcomers — as well as end markets and suppliers, to advise on the best strategic actions in the midst of changing technology and supply chain issues.