Rivian (NASDAQ: RIVN) won the attention of investors when it went public back in 2021 at a time when investors were excited about electric-vehicle (EV) stocks and low interest rates made car buying more affordable than today. Fast forward a few years, and high interest rates have dampened EV demand. Many investors have fled EV stocks, and Rivian’s share price has fallen 89% since its initial public offering (IPO).

Rivian is facing several difficulties, including flatlined production, high costs, and a general slowdown in EV sales. The company’s vehicle production reached 57,232 last year, and Rivian says it will produce just 57,000 vehicles again this year. Flat year-over-year production is not what you want from a young automaker. Additionally, Rivian continues to lose money on the vehicles it sells. In 2023, the company had $4.43 billion in revenue and an operating loss of $5.74 billion.

Despite these challenges, there is good news. Rivian’s vehicle deliveries increased by 71% year over year in the first quarter to 13,588 units. The company has taken several steps to control its costs, including shifting production to its existing Illinois plant and re-engineering its vehicle systems to save costs. Rivian’s leadership stated that these changes led to a 35% reduction in material costs for its vans and a similar reduction for its trucks and SUVs.