Rivian Electric Truck - MKBHD Impressions

[NoHalfWay]

You could have waited until Tesla turned its first profitable quarter and bought it. You’d have an average share price in the low single digits.

Rivian isn’t a long term play. It’s straight up gambling. You are so early to the party the building it’s going to be held at isn’t even completed yet. Rivian hasn’t even proven its business is sustainable. They’re losing $40K every time they sell a vehicle. That is not sustainable long term.

You do not have to buy a stock in its early days to profit. You can let a business prove itself first. Never buy a company with negative gross margins.

The average price of a new vehicle is $48K. Rivian is almost giving away the value of a new vehicle every time they sell one. Don’t care how nice their cars are if that doesn’t change fast they’re doomed.

That’s why I only invest money into Rivian that I’m willing to lose, since it’s a minuscule part of the portfolio.

The company projected positive gross margins by the end of this year. If they aren’t there or even near the vicinity then I’ll re-evaluate it. But yeah everybody knows the cash burn isn’t sustainable. That’s why they suspended the plant operations in Georgia to save a couple billy

I just know that I personally have seen enough to throw my hat in on a stock when it had plummeted recently to all time lows. They have started to gain recognition as a brand, they have a relatively strong consumer market, and big time investors (Bezos) in their back pocket that prolly won’t let them fail. I’m digging in

 

[jadillac]

Who do you have currently? I bushed State Farm… I umbrella my auto insurance under my home insurance..

I have GEICO. I just paid $1,000 for my month lump sum payment on 3/1. I know it's mainly bc my EV is more expensive than my previous Accord.

 

[BigMoneyGrip]

I have GEICO. I just paid $1,000 for my month lump sum payment on 3/1. I know it's mainly bc my EV is more expensive than my previous Accord.

Yeah I have Geico and just combined my auto with my home.. Now my homeowners insurance is already in my mortgage payment so I don’t even have to worry about a separate payment for auto insurance..

As for insuring EVs I don’t know why it’s more to insure one of a newer year verses verses one that’s about 3-5 years old.. Tesla model 3s are literally the same from 2018-2023 yet it’s cheaper to insure one from 2018-2020 even with under 30k miles.. all the improvements are over air updates.. otherwise everything on the car ain’t change

 

[jadillac]

Yeah I have Geico and just combined my auto with my home.. Now my homeowners insurance is already in my mortgage payment so I don’t even have to worry about a separate payment for auto insurance..

As for insuring EVs I don’t know why it’s more to insure one of a newer year verses verses one that’s about 3-5 years old.. Tesla model 3s are literally the same from 2018-2023 yet it’s cheaper to insure one from 2018-2020 even with under 30k miles.. all the improvements are over air updates.. otherwise everything on the car ain’t change

Nobody wants EV owners to save money.

We don't have normal inspections, no regular maintenence, so tryna screw us outta that saved money

 

[winb83]

That’s why I only invest money into Rivian that I’m willing to lose, since it’s a minuscule part of the portfolio.

The company projected positive gross margins by the end of this year. If they aren’t there or even near the vicinity then I’ll re-evaluate it. But yeah everybody knows the cash burn isn’t sustainable. That’s why they suspended the plant operations in Georgia to save a couple billy

I just know that I personally have seen enough to throw my hat in on a stock when it had plummeted recently to all time lows. They have started to gain recognition as a brand, they have a relatively strong consumer market, and big time investors (Bezos) in their back pocket that prolly won’t let them fail. I’m digging in

Let's ask a legitimate question. If a guy owned a business and told you he wanted to sell to you and he was losing $40K per transaction but thought he could possibly be profitable by the end of the year would you buy right then and there or wait till he shows he can reach profitability?

The problem is people think they're buying a stock. You are buying ownership in a business. When you think of it as a stock it's somewhat divorced for what's actually going on.

There's no way in hell they're reaching profitable gross margins at the end of the year. Every time they sell a truck they could just toss in a free Model 3 base model. It's that bad. You don't get from that to profitability in less than 9 months.

 

[NoHalfWay]

Let's ask a legitimate question. If a guy owned a business and told you he wanted to sell to you and he was losing $40K per transaction but thought he could possibly be profitable by the end of the year would you buy right then and there or wait till he shows he can reach profitability?

The problem is people think they're buying a stock. You are buying ownership in a business. When you think of it as a stock it's somewhat divorced for what's actually going on.

There's no way in hell they're reaching profitable gross margins at the end of the year. Every time they sell a truck they could just toss in a free Model 3 base model. It's that bad. You don't get from that to profitability in less than 9 months.

You gonna have to ask Jeff Bezos breh, he initially gave them $700 Ms and still has the 100,000 delivery trucks that are being deployed.

Positive gross margins doesn’t even equal profitability either. So I already know it’s a risky stock, but Rivian has personally already shown me enough to throw a couple dollars at it

The cash burn is and financials are rough & they do lose a lot of $$$ on every truck sale, but I believe they have a strategic play and deals on hand that will give them runway to reach profitability.

It’s the combination of big time investors behind them, the products, the growth of the company, and the consumer interest that has me pricing in on Rivian. Even if they’re potentially staring down the barrel of bankruptcy come 2025/2026, I have little to no doubt some bigger corporation will come in and pad their operation.

 

[winb83]

You gonna have to ask Jeff Bezos breh, he initially gave them $700 Ms and still has the 100,000 delivery trucks that are being deployed.

Positive gross margins doesn’t even equal profitability either. So I already know it’s a risky stock, but Rivian has personally already shown me enough to throw a couple dollars at it

The cash burn is and financials are rough & they do lose a lot of $$$ on every truck sale, but I believe they have a strategic play and deals on hand that will give them runway to reach profitability.

It’s the combination of big time investors behind them, the products, the growth of the company, and the consumer interest that has me pricing in on Rivian. Even if they’re potentially staring down the barrel of bankruptcy come 2025/2026, I have little to no doubt some bigger corporation will come in and pad their operation.

Rivian has like $9 billion in cash and they burned in the last reported quarter $1.1 billion. They're easily burning over a billion a quarter average. They're either going to run out of money and declare bankruptcy or dilute you as a shareholder to raise more capital and with that bring on more debt. This isn't the era of cheap money either. Taking on high interest debt is undesirable.

Sitting on the sidelines to let them stabilize is the best idea. Got no problem investing in Rivian but they have to show they can climb out of the hole they're in. I'm not jumping in there with them. They don't even really have the cash on hand to make it to the first half of 2026 when they're planning their new more affordable models.

 

[NoHalfWay]

Rivian has like $9 billion in cash and they burned in the last reported quarter $1.1 billion. They're easily burning over a billion a quarter average. They're either going to run out of money and declare bankruptcy or dilute you as a shareholder to raise more capital and with that bring on more debt. This isn't the era of cheap money either. Taking on high interest debt is undesirable.

Sitting on the sidelines to let them stabilize is the best idea. Got no problem investing in Rivian but they have to show they can climb out of the hole they're in. I'm not jumping in there with them. They don't even really have the cash on hand to make it to the first half of 2026 when they're planning their new more affordable models.

I think they will raise the capital and the stock will take a hit, anything to make it to the R2 release. Suspending the Georgia plant reportedly saves them $2.25 billion in the long run.

One of the biggest things that is going to affect them along with the entire EV market is if or when the Federal Reserve decides to start cutting interest rates within the next 4 to 8 months.

But yeah, don’t blame anyone not touching the stock. I personally believe they will not go bankrupt. They’re gonna get saved before that