• Jim Chen is leaving Rivian
• Already several departures at the turn of the year
• Rivian share under pressure
Rivian chief lobbyist Jim Chen is committed to direct sales
In November 2018, Jim Chen joined electric car maker Rivian as vice president of public affairs and senior regulatory advisor. He previously worked for various consulting firms as well as industry competitors Faraday Future and Tesla. Chen worked in the “Regulatory Affairs” department at Musk Group for more than five years, and left the startup Faraday Future after just six months. According to the Wall Street Journal, Chen’s main focus at Rivian was to promote direct sales of electric vehicles to consumers – a business strategy that is also used at Tesla. Rivian does not use traditional dealers to sell its own cars, but sells them directly to its customers. According to the newspaper, Chen has faced resistance from local car dealerships in the US states of Washington, Georgia and Connecticut, so Rivian is not allowed to sell there without intermediaries. “It’s definitely a much tougher fight,” Chen told The Wall Street Journal.
Departure is imminent
Now the chief lobbyist of Tesla’s competitor is about to leave. Chen is scheduled to leave Rivian by the end of the current month. The Plymouth, Michigan-based company told the newspaper that the move was mutual and Chen wanted to spend more time with his family and travel. “I’m proud of the work we’ve done, the impact we’ve had and the team we’ve built,” Chen said in an email.
Chen’s exit follows chair-sharing
Just a few days before the announcement that Chen was leaving the company, it was revealed that an extensive back-seat must have preceded it. Both Randy Frank, vice president of body and interior engineering, and Steve Gawronski, vice president of parts purchasing, left earlier this year, the Wall Street Journal reported. Also in late 2022, senior director Patrick Hunt resigned after legal counsel Neil Sitron left the company in September 2022. According to the report, a spokeswoman did not want to comment on the individual cases, but said that they wanted to ramp up production with the help of suitable talent. “We will continue to attract world-class talent to our company as our business needs change,” she told the paper.
Rivian misses production target
For the full year of 2022, Rivian missed its target of producing 25,000 vehicles by 700, which the company justified with difficulties in sourcing parts. In addition, the share price of the e-car hope, which has only been listed on the NASDAQ since November 2021, has fallen significantly since the stock market debut. While the shares started on November 10, 2021 at USD 106.75, well above the issue price of USD 78, the Rivian shares were last traded at just USD 19.49 (closing price on February 14, 2023). .
Most Rivian vehicles do not qualify for tax credits
The fact that Chen is now turning his back on Tesla’s rival comes at a bad time for the company. For example, Rivian is currently suffering from US government regulations that only provide tax credits for certain electric models. Under the Inflation Reduction Act, only electric trucks and SUVs priced below $80,000 qualify for the tax credits. Although the R1T pickup and the R1S SUV are already available for less than $80,000, the price threshold is usually exceeded with additional equipment and other upgrades, Rivian regrets to the Wall Street Journal.
Editorial office finanzen.net
Leverage must be between 2 and 20
No data
More news about Faraday Future
Image Credits: David Becker/Getty Images, Michael Vi/Shutterstock.com