Rivian looks like it's trying to get Apple's attention

By Therese Poletti

EV maker unveils its new model with nods to Apple, which may still be looking to get into the automobile business

Rivian looks like it's trying to get Apple's attention.

During Thursday's much-anticipated launch of the R2, its next electric vehicle, Rivian Automotive Inc.'s (RIVN) founder and chief executive, R.J. Scaringe, copied a few of Apple Inc. (AAPL) co-founder Steve Jobs's signature keynote moves. Scaringe invoked Jobs's famous "one more thing" - twice, actually - as he showed two prototype vehicles, counting an EV crossover called the R3.

Scaringe also briefly held his hands together at the end of the event in the prayer pose, seemingly a nod to one of Jobs's most oft-displayed mannerisms. It is sometimes used today by Apple CEO Tim Cook.

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For sure, Rivian could use some help. After its disappointing earnings results last month, a few analysts on Wall Street became more bearish on the company, amid "tepid" EV demand and price competition with Tesla Inc. (TSLA) and other big rivals in the space. Rivian also noted during the launch Thursday that it has paused work on its planned Georgia manufacturing plant, and that it would manufacture the R2 at its Normal, Ill., plant. Rivian also priced its new R2 at a more affordable $45,000, versus its average truck and large SUV prices of about $70,000.

Analysts expect that Rivian will eventually need to do a big capital raise to further fund its manufacturing needs.

This is where Apple could fit in, as a potential partner or even an outright buyer. Apple is still sitting on one of the largest cash piles in tech - about $41 billion in cash and equivalents as of Dec. 31.

Last week, Bloomberg and others reported that Apple was canceling Project Titan, its effort to build an autonomous electric vehicle - a program whose existence the tech giant had never officially confirmed in the first place. When interviewed on CNBC after the reports, Deepwater Asset Management's Gene Munster talked about how disappointed he was, saying that Apple needed to get into another new market after several consecutive quarters of falling revenue.

"I do think Apple needs to break into some big market," Munster told the cable news channel. "They need to do something big, and potentially Rivian would be the answer to that." He also said that if Apple were to get even 10% of the automotive market, it would result in a 60% increase in top-line revenue. "We can set aside the earnings question," he said, adding that he thought Apple could do something "really special" in the automotive arena.

Amazon Inc. (AMZN) is currently Rivian's largest shareholder. But late last year, the EV maker ended its exclusive deal to provide Amazon with electric vans. The selloff in Rivian's shares late last month was felt by Amazon, which suffered a roughly $1 billion decline in the value of its Rivian investment.

Whether Rivian is looking to Apple as a potential savior or partner, or is merely emulating the polished launches of such products as the iPhone in 2007 or the iMac in 1998, is unclear for now. A merger with Apple could certainly provide a solution to Rivian's financial stress, but it would be an entirely new and possibly tough market for the personal-computer and smartphone pioneer.

But you can't fault Rivian for trying.

-Therese Poletti

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03-08-24 0950ET

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