Electric vehicle (EV) maker Rivian (NASDAQ:RIVN) laid off 20 people in its in-house battery team, including the lead cell engineer.
Victor Prajapati, a former manager with Tesla (NASDAQ:TSLA), was reportedly one of those let go.
RIVN stock rose 4.4% on Dec. 7. Investors don’t seem to be phased by these Rivian layoffs. RIVN stock was nearly unchanged in the pre-market this morning — shares traded early this morning at about $19.10 each, a market capitalization of $18.4 billion.
We Don’t Need No Steenkin Batteries
RIVN stock is buoyed by new buy ratings from analysts, who see headwinds waning next year and sales picking up.
The company is conserving capital to design its R2 platform, which will compete with the Tesla Model Y in 2026. That car is due to be unveiled in 2024. Prices will start at $40,000 and be made at a new plant in Georgia. The car is expected to be capable of off-road driving, and there will be a pickup version.
Rivian has become known for its high-end pickups, which occupy a niche alongside the Ford Motor (NYSE:F) F-150. Ford was an early supporter of Rivian but sold most of its stake early this year. The sale came after Rivian lost most of its value in the 2022 tech wreck.
Rivian also has a long-running contract to supply 100,000 delivery vans to Amazon (NASDAQ:AMZN), which retains a 17% stake in the company. A former exclusive on the design of the vans expired earlier this year.
Rivian currently uses battery packs made by a unit of Samsung (OTCMKTS:SSNLF). SK Battery of Korea has built a battery plant in Commerce, Georgia, north of the proposed Rivian car plant. Hyundai Motor (OTCMKTS:HYMTF) announced a Georgia battery plant outside Savannah in May.
Rivian Layoffs: What Happens Next?
Rivian will be able to get plenty of batteries when it opens its Georgia plant. It will focus on packaging them and building the cars.
As of this writing, Dana Blankenhorn had a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
