Latest news with #RJScaringe
Reuters
3 days ago
- Automotive
- Reuters
Rivian eyes new debt deal as expected vehicle deliveries slump, Bloomberg News reports
May 30 (Reuters) - Rivian Automotive (RIVN.O), opens new tab is working with JPMorgan Chase (JPM.N), opens new tab on a potential high-yield bond sale, in part to refinance its upcoming debt, Bloomberg News reported on Friday, citing people familiar with the transaction. The EV maker is looking to raise as much as $2 billion, partly to replace existing bonds that mature in 2026, the report said. JPMorgan is sounding out investors on the bond deal, with early pricing talks suggesting a yield around 10%. The transaction could launch as soon as next week, although the deal is still under discussion and may not proceed as planned, according to the report. Rivian and JPMorgan did not immediately respond to Reuters' requests for comment. The possible debt deal comes after Rivian lowered its 2025 deliveries forecast earlier in May, as U.S. tariffs on imported vehicles and auto parts threaten to disrupt the economy and reduce demand for its electric SUVs and pickup trucks. "About the impact of tariffs, it's a couple of thousand dollars of cost that we're going to see on a per-vehicle basis," CEO RJ Scaringe told Reuters earlier this month. Despite manufacturing its vehicles in the U.S. and sourcing most parts from North America, Rivian relies on Asian countries for essential components like lithium-ion batteries. These components are subject to significant duties, increasing the expenses for EV makers.
Yahoo
3 days ago
- Automotive
- Yahoo
Rivian eyes new debt deal as expected vehicle deliveries slump, Bloomberg News reports
(Reuters) -Rivian Automotive is working with JPMorgan Chase on a potential high-yield bond sale, in part to refinance its upcoming debt, Bloomberg News reported on Friday, citing people familiar with the transaction. The EV maker is looking to raise as much as $2 billion, partly to replace existing bonds that mature in 2026, the report said. JPMorgan is sounding out investors on the bond deal, with early pricing talks suggesting a yield around 10%. The transaction could launch as soon as next week, although the deal is still under discussion and may not proceed as planned, according to the report. Rivian and JPMorgan did not immediately respond to Reuters' requests for comment. The possible debt deal comes after Rivian lowered its 2025 deliveries forecast earlier in May, as U.S. tariffs on imported vehicles and auto parts threaten to disrupt the economy and reduce demand for its electric SUVs and pickup trucks. "About the impact of tariffs, it's a couple of thousand dollars of cost that we're going to see on a per-vehicle basis," CEO RJ Scaringe told Reuters earlier this month. Despite manufacturing its vehicles in the U.S. and sourcing most parts from North America, Rivian relies on Asian countries for essential components like lithium-ion batteries. These components are subject to significant duties, increasing the expenses for EV makers. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Automotive
- Yahoo
Rivian secures $1B infusion from VW after meeting Q2 profit goal
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Electric vehicle maker Rivian achieved its second consecutive quarterly gross profit in Q2, which triggered a $1 billion cash infusion from partner Volkswagen Group, CEO and founder RJ Scaringe said during a call with analysts May 6. The funds, which executives expect to receive by the end of June, will aid Rivian in deploying its technology and software stack to a wide array of vehicles by capitalizing on VW's scale as it pushes for broader EV adoption, according to Scaringe. 'The relationship there continues to progress really well,' Scaringe said of the partnership. 'At this point, we're very focused on executing a lot of programs across the Volkswagen Group.' In addition to financial support from VW, Rivian's efforts to scale production has also been bolstered by a $6.6 billion Department of Energy loan finalized in January to revive the company's stalled Georgia EV factory project, which is expected to start production by 2028. The company is also investing $120 million in Normal, Illinois, where it is constructing a supplier park meant to create an electric vehicle manufacturing ecosystem next to its production plant where it is building the R2 SUV. However, like other automakers, Rivian also faces tariff-fueled headwinds necessitating plans to offset higher duties on automotive parts, especially battery components. CFO Claire McDonough said on the call that the company expected 'per unit direct impact from tariffs to be a couple thousand dollars for 2025 based off of the currently announced tariffs in place.' Rivian's chief concern is rising cost for battery materials. McDonough said while the company's stockpile of batteries is sufficient to carry its production through early 2026, it continues to monitor export restrictions on rare earth minerals from China. 'We are actively monitoring these developments and working to mitigate potential risks through a variety of initiatives, including strategic sourcing and proactive engagement with policymakers,' she said. Higher component costs due to tariffs moved Rivian to raise its capital expenditure guidance to between $1.8 billion and $1.9 billion. Uncertainty fueled by economic policies also led the company to revise its delivery outlook to 40,000 to 46,000 vehicles, down from 46,000 to 51,000 announced April 2. But Rivian believes higher production costs may be short-lived as it works with suppliers, including LG, to secure domestically produced batteries. Scaringe said the R2 uses the 4695 cell format currently sourced from Korea, but that will soon change. 'We've been for a while now working very closely with our partner on this, which is LG, to localize that into the United States and starting in 2027 those cells will be produced in Arizona,' he said. Recommended Reading Rivian investing $120M in Illinois to strengthen domestic supply chain Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
20-05-2025
- Automotive
- Business Wire
Rivian to Participate in TD Cowen 9th Annual Future of the Consumer Conference
IRVINE, Calif.--(BUSINESS WIRE)--Rivian Automotive, Inc. (NASDAQ: RIVN) today announced that on Tuesday, June 3, 2025, at 3:30PM ET, Rivian Founder and CEO RJ Scaringe will participate in a fireside chat at the TD Cowen 9th Annual Future of the Consumer Conference. A live webcast will be available here. About Rivian: Rivian (NASDAQ: RIVN) is an American automotive manufacturer that develops and builds category-defining electric vehicles as well as software and services that address the entire lifecycle of the vehicle. The company creates innovative and technologically advanced products that are designed to excel at work and play with the goal of accelerating the global transition to zero-emission transportation and energy. Rivian vehicles are built in the United States and are sold directly to consumer and commercial customers. Whether taking families on new adventures or electrifying fleets at scale, Rivian vehicles all share a common goal — preserving the natural world for generations to come. Learn more about the company, products, and careers at
Yahoo
20-05-2025
- Automotive
- Yahoo
Rivian to Participate in TD Cowen 9th Annual Future of the Consumer Conference
IRVINE, Calif., May 20, 2025--(BUSINESS WIRE)--Rivian Automotive, Inc. (NASDAQ: RIVN) today announced that on Tuesday, June 3, 2025, at 3:30PM ET, Rivian Founder and CEO RJ Scaringe will participate in a fireside chat at the TD Cowen 9th Annual Future of the Consumer Conference. A live webcast will be available here. About Rivian: Rivian (NASDAQ: RIVN) is an American automotive manufacturer that develops and builds category-defining electric vehicles as well as software and services that address the entire lifecycle of the vehicle. The company creates innovative and technologically advanced products that are designed to excel at work and play with the goal of accelerating the global transition to zero-emission transportation and energy. Rivian vehicles are built in the United States and are sold directly to consumer and commercial customers. Whether taking families on new adventures or electrifying fleets at scale, Rivian vehicles all share a common goal — preserving the natural world for generations to come. Learn more about the company, products, and careers at View source version on Contacts Investors: ir@ Media: Harry Porter: media@
