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Rivian expands Service Department despite layoffs

Rivian service center with staff via Rivian Website

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Rivian has six new service locations that will open by the end of this year and the company is continuing to hire service staff, despite layoffs in other departments.

Last month, Rivian announced that they would be cutting staff by six percent, an announcement that could be seen as a threat to Rivian’s goal of producing 25,000 vehicles this year. However, Rivian has continued to hire both manufacturing staff and service workers to keep up with demand, leaving both departments out of the layoffs affecting the rest of the company.

With a library of 90,000 orders for the Rivian R1S and R1T as well as a 100,000-van order from Amazon, by the time Rivian has completed these orders, there will be close to a quarter of a million Rivian products on the road with many, at one point or another, requiring maintenance. Currently, this is done at one of Rivian’s 21 service locations found within the US, and six more are expected to join this group by the end of the year to keep up with service demand, Automotive News reported.

The issue of keeping up with service requests is not unique to Rivian. Legacy automakers have dealerships that are spread throughout the country to help meet the demands of consumers, however, because new EV startups (including Rivian) have chosen to bypass the dealership model and instead opt for direct-to-consumer, they now must work to construct their service network.

As demand for service can grow exponentially faster than supply, Tesla in particular has grappled with the issue for years, however, Rivian has a new opportunity to address the issue before becoming mainstream.

Rivian already employs many of the same tools as Tesla in their efforts of service; mobile service, wireless software service, and branded service stations are all already being in use. But they have other options as well, and perhaps some lessons can be learned from the legacy automakers.

One of the best things that Rivian could do to tackle service requests around the country is to allow third-party repair. While the term brings shivers to the likes of Tesla, Apple, and John Deer executives alike, it has shown to be remarkably successful at helping manufacturers keep their products in use while costing them little to nothing to do so. Ford, for instance, offers a training program that can be attended by Ford dealer technicians and third-party technicians alike, and even Tesla now offers their online repair manual for free; allowing both owners and techs to work to fix issues before the manufacturer ever has to touch them.

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In the case of Rivian, the third-party repair would even help them maintain their sustainable brand image as more vehicles could be kept on the road longer, keeping waste out of landfills.

Many remain cynical that companies like Rivian will open up third-party repair options, and rightfully so. It was only a recent change that Tesla allowed access to their repair manuals for free, and the general trend of most consumer electronics is to make them harder to open and harder to fix; nonetheless, Rivian has the unique opportunity to head off these issues early. They are still a young company and can allow people to use and fix their vehicles very easily; I remain hopeful.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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Elon Musk

Elon Musk sheds two new bits of detail on Starship after 13th test launch

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Credit: SpaceX

Elon Musk shed two new bits of detail on Starship following its 13th test launch, which was an overwhelming success.

SpaceX launched Starship for the 13th time last Friday after two delays: one on Monday when several Raptor engines did not ignite, and another on Thursday due to unfavorable weather conditions in Starbase, Texas.

The launch was overwhelmingly successful. SpaceX was able to complete a necessary test of the heat shield tiles by increasing the acceleration of Starship from launch throughout the flight; 20 Starlink v3 satellites were released with no issue; the Super Heavy Booster landed safely in the Gulf of America, Ship successfully reignited engines while in space; and it also splashed down without incident in the Indian Ocean.

SpaceX Starship just nailed something it’s never done before

Nevertheless, more details are coming out about Starship, and Musk is doing the talking.

Starship Will Be Retrieved in the Ocean

Musk revealed on Tuesday night that Starship would be recovered by a ship in the Indian Ocean. SpaceX routinely tries to recover Starship after splashdown in an effort to find out more about the flight by examining the spacecraft afterward.

This helps engineers find out more about why things might have happened, allows them to examine any potential damage or anomalies that might have occurred, and increases the chances of an even more successful flight next time thanks to the additional information recovered.

Ship Could Have Been Caught by Tower Arms, Musk claims

Musk has already indicated that SpaceX will plan to attempt a catch of Starship with the 14th test flight. While this would be a major accomplishment, it would be an expected next step, considering the fact that the Super Heavy Booster has already been caught by the chopsticks on numerous occasions.

A ship catch would be a great indication of where SpaceX stands in terms of reusability and launch cadence. A successful catch with relatively no incidents would be a good sign that SpaceX is nearing a more frequent launch of Starship, but also that the reusability of the massive rocket would be something many would expect in the near future.

It is a necessity to make life multiplanetary.

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Elon Musk

Elon Musk updates the SpaceX timeline for Mars

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Rendering of a colonized Mars by way of SpaceX
Rendering of a colonized Mars by way of SpaceX

Elon Musk has updated his timeline for when humans will walk on Mars and for when ships will simply get there.

The objective of getting to Mars has been one of Musk’s biggest goals since becoming a serial entrepreneur and realizing that time on Earth is limited. Musk has said several times he hopes to die on Mars, and not by impact.

Musk now believes that people will be on Mars in “roughly 5 to 7 years.” He said that a Mars lander will get there “a few years sooner.”

The response from Musk comes after NASA Administrator Jared Isaacman said that SpaceX’s biggest priority is the Moon and not Mars. Because of this, Isaacman conceded that he believes nuclear power and propulsion investments will provide “potentially the pathway with the fewest miracles required to put four people on Mars in the next 10 to 15 years.”

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Of course, this is what NASA can do through taxpayer funding and nuclear investments, he added.

Musk’s grand ambitions are much more optimistic than most, and it is certainly a double-edged sword. This is not the first time timelines for Mars have been somewhat lofty, especially to those normal thinkers like you and me, not super geniuses like Musk.

SpaceX Board has set a Mars bonus for Elon Musk

In fact, the SpaceX and Tesla frontman has said on at least a dozen occasions that we could be on Mars in the coming years. Musk said 2020 would be the big year as early as 2009. In 2020, he was “highly confident” of a landing in 2026, and had even said 2024 in a best-case scenario.

The point is, the range has varied, and it’s anyone’s guess when we’ll get there. This latest adjustment to the timeline is typical of Musk, and while the Moon has seemingly taken priority over Mars, it is still worth mentioning that the ultimate goal is to make life multiplanetary, and it starts potentially with the Red Planet.

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Investor's Corner

SpaceX gets an absolutely crazy price target after rough IPO

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Credit: SpaceX

SpaceX (NASDAQ: SPCX) got an absolutely crazy price target rating from Raymond James after the company experienced a tough first few weeks following its Initial Public Offering (IPO).

Despite the tumultuous start, SpaceX has plenty of believers, and the company’s massively successful Starship launch last Friday, its 13th test flight of the massive rocket, went so smoothly that Raymond James analysts pushed its price target on the company to roughly 7 times its current trading level.

SpaceX Starship just nailed something it’s never done before

The firm officially put a “Strong Buy” rating and an $800 price target on the stock. It currently trades at around $113. Its all-time high is $225.64, reaching this trading level shortly after shares first went public.

Raymond James’ price target is tied to the firm’s confidence after Starship’s 13th test flight. Analysts at the firm said it was an incremental step that reduces engineering risks, citing the widely successful heat shield test that CEO Elon Musk recently detailed, the smooth deployment of Starlink V3 satellites, and a successful in-space engine relight.

SpaceX also managed to see Starship splash down safely in the Indian Ocean, while the Super Heavy Booster fell down to the Gulf of America with no incidents.

It is interesting to see these launches have such a tremendous impact on the stock and what investors think of it. After SpaceX initially delayed the Starship launch last week, shares fell tremendously. Most probably did not realize that the stand-down is a standard practice, especially if everything is not perfect.

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The mission was initially aborted due to an issue with Raptor engines. This was resolved, and Starship launched last Friday after another delay on Thursday, which was caused by weather.

Now that analysts have seen what SpaceX launches are capable of and how impressive the feat is, firms are adjusting their price targets accordingly, making it known that they have high expectations for the space exploration company.

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