What special? Are you kidding me? Who is buying Rivian? Only stupid people with money. Rivian will not be profitable by the end of 2024. Rivian will not survive. It is too expensive while Chinese EV is getting better.
Does Rivian make any money on its vans it sells to amazon? May be they can make some money with some services or maintenance of these vans over time. If so i see it as a viable business as they will sell to UPS, Fedex etc.
I see a huge cost in R&D.... so your problem is that they are not on the short-term dividend path? If cash comes in and the trend continues.... $$$$. Plus, what happens if say Apple buys them? Rivian seems like a company that would integrate very nicely into Apple's culture.
I would hope that anyone investing significantly in stocks knows the difference between gross profit margins and operating profit margins. I frankly couldn't disagree more with the idea that rivian needs to outsource its component design and software stack. That is the surest way to arrive at a subpar product that won't sell and can not scale due to the high volume inefficiency and complications/limitations of outsourcing. Choosing to design a product cheaply in a competitive landscape is choosing to fail. it's as simple as that. Rivian doesn't need Normal to be free cash flow positive to survive , Rivian needs Normal to prove that the demand for and the cost structure of r1, r2 and r3 (and addons/extras) is such that with Georgia and future large scale expansions rivian will be able to achieve operating margins >= legacy auto margins. This is what is needed to build confidence with investors and banks so that rivian can raise the capital needed to expand. Stopping at Normal was never the objective.
I really like the look and quality of these cars but they made a big mistake to have there first cars be luxury SUV and trucks. The market just isnt big enough to have volume in sales they need
Rivian is even worse shape than you described. In 1Q24, Rivian's loss per vehicle was over $100,000. As proof... in 1Q24, Rivian lost $1.4 bill. Rivian sold 13,588 vehicles. Rivian's GAAP loss was $103,032 per vehicle. In 4Q23, Rivian's gaap loss was $107.4k/vehicle. Rivian's situaion is beyond dire. Rivian needs to sell its cars for around $200k+ just to break even on a gaap basis. Almost impossible. Rivian's inability to reduce its massive losses is why Rivian is headed for certain bankruptcy
@@asymmetricinvesting well lets do some math- with 37k R2/ 15k R1/EDV a quarter- R2 37k * 50k (average price) =1,850,000,000 * 15% margins= 280 mill//// edvs 85k* 4k= 340,000,000 * 15% margins= 51,000,000//// R1 12k* 90k= 1,080,000,000 *15% margins = 162,000,000=== 493,000,000 a quarter= R&D is 400 million and SGA will probably be 600 million. you can't see the path= you cut R&D a ton now that you've got R2 and a new Drive unit -so you get around 650 million a quarter total SGA and R7D- then you add in carbon credits/opening up charging network to everyone/ and the new infotainment unlock that is 14.99 a month to make up the 100~ million left a q. also I think on the edvs and R1(s) the margins will be higher that 15%- esp the Amazon EDVs.
@@josephjoslin-nz7om Now you just need to cover another $450 million per quarter in operating costs. Plus, R2 doesn't launch for 2 years, so you have to cover the cash burn in the meantime. Not enough cash on hand to do that. Do you raise another $3-5 billion in the next year to get there?
@@asymmetricinvesting well lets do some math- with 37k R2/ 15k R1/EDV a quarter- R2 37k * 50k (average price) =1,850,000,000 * 15% margins= 280 mill//// edvs 85k* 4k= 340,000,000 * 15% margins= 51,000,000//// R1 12k* 90k= 1,080,000,000 *15% margins = 162,000,000=== 493,000,000 a quarter= R&D is 400 million and SGA will probably be 600 million. you can't see the path= you cut R&D a ton now that you've got R2 and a new Drive unit so you get around 650 million a quarter total SGA and R7D then you add in carbon credits/opening up charging network to everyone/ and the new infotainment unlock that is 14.99 a month to make up the 100~ million left a q. also I think on the edvs and R1(s) the margins will be higher that 15%- esp the Amazon EDVs.
you've said in the video there is no path to profitability period in normal thats just not true- there is a path to profitability in normal technically- NOW you're moving the goalpost and saying well they are going to have to raise money- you should change your video title and what you say in it.
The day the stock goes up, Shorters release such shit again and again to bring it back down. Need to do a Game Stop on Rivian!! Same with Motley fool articles of, One day buy Rivian, next day sell Rivian.
Rivian has the “it” factor. In 10 yr you will look back and calculate how much you missed out on. Poor analysis. Seems like you don’t have the patience for this company to develop and grow. In next few years they will start selling in Europe too. The factory revamp last month cut cost of production per vehicle by 30%.
