Ford "PRICE WAR" drives RIVN under $10

[Tahoe Man]

more opportunities to buy the dip!

What dip? It's been a continuous sinking hole.

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[waitingonanr1s]

"RIVN stock slid 6.7% through noon ET on Thursday -- but not because of any mistake that Rivian made.

This time, the blame belongs to Ford Motor Company (NYSE: F), which just declared a price war in electric trucks, and turned Rivian stock into roadkill in the process.

Have you driven a Ford lately? (Because it's cheaper than it used to be)
Any day now, Ford archrival General Motors (NYSE: GM) will begin selling its new Silverado EV electric pickup truck in competition with Ford's F-150 Lightning. Ford saw its automotive rival inching closer in the rearview, however, and is gunning the motor to stay ahead -- lowering the price of some F-150 Lightning models by as much as $5,500, as CarsDirect.com reported this week.

It's not entirely clear whether this move will be enough to maintain Ford's lead over Chevy. Notably, the lowest-trim "Pro" F-150 Lightning still costs a pricey $54,995, and the most expensive "Platinum" Lightning still costs a nosebleed $84,995. (Price cuts are all on the mid-tier vehicles). What is clear is that Ford's pre-emptive strike at Chevy, and the price war it foreshadows, seems to be spooking investors in Rivian."

So dumb. The charging speed is garbage on the lightning. I actually like the vehicle, but after watching how far behind they ended up on the out of spec ocean to ocean race due to slow charging, there's no way I'd even consider it. They're going to need to figure that out to compete.

 

[UnsungZero_OldTimeAdMan]

Built cheaper too. Take a casual audit of Ford owner forums, plenty of build quality complaints. Even this journalist/blogger couldn't overlook it when given a new Ranger to review: https://www.thedrive.com/car-reviews/2024-ford-ranger-first-drive-review

I don't think it's accurate to blame any one thing for Rivian's stock price. The opinion battle for electrification continues. Overall sentiment is probably more negative/doubtful than otherwise. Even legitimacy of Tesla's "success" is being argued over. Any number of excuses could drag the whole EV segment down on any given day.

 

[R1TS]

Make a simplified R1T and sell for a lower cost and demand will go up.

That wouldn’t fit the R1 branding alongside the R1S as a flagship lineup.

Plus, making custom R1T occasionally on the R1 line is completely inefficient. They could be much more efficient with costs by reducing the 2 shifts to 1 for just R1 if they have that kind of flexibility.

 

[KootenayEV]

That wouldn’t fit the R1 branding alongside the R1S as a flagship lineup.

Plus, making custom R1T occasionally on the R1 line is completely inefficient. They could be much more efficient with costs by reducing the 2 shifts to 1 for just R1 if they have that kind of flexibility.

Fair enough it would complicate the branding.

I don't know enough about the assembly line to understand whether installing a simplified suspension system (ie no hydraulic roll and just coil springs) would be possible without major modifications to the assembly process, but I wouldn't call it "custom" - it would likely be the breadwinner of the R1T line with the fancier suspension / more HP variants as the halo products.

As far as your shift comment, my understanding is both the S and T are on the same line, so it is a matter of changing the product mix (which has other complications with supplier contracts etc of course).

 

[edman007]

That wouldn’t fit the R1 branding alongside the R1S as a flagship lineup.

Plus, making custom R1T occasionally on the R1 line is completely inefficient. They could be much more efficient with costs by reducing the 2 shifts to 1 for just R1 if they have that kind of flexibility.

So name it something else. They could do a lot just downgrading the suspension and interior, make a single motor version

As for custom orders, they need to reduce the options, batch them into new trims so only a few actual customer choices exist (like interior and exterior color and wheels)

 

[zipzag]

That pretty much sums it up, and the reason for this news and subsequent stock price drop.

Rivian wouldn’t realize any negativity by stopping the R1T. In fact, I bet it helps the stock price and the company’s bottom line by doing so.

I’ve said before, Rivian needs to drop the R1T completely and use whatever small or large amount of resources gained from dropping the R1T to focus on getting the R2 and R3 out faster.

The only people who wants an EV truck for $80K already has one. There’s no market there for electrified trucks. Rivian most likely knows this but too much ego to act on it.

Your understanding of business is nonexistent. Or youre being humorous. Can't tell

 

[Epicloop]

Make a simplified R1T and sell for a lower cost and demand will go up.

That and fill up that dead space with 2 more modules at a fair price & the real MP gain some customers.

 

[jjswan33]

https://www.cnbc.com/2024/04/11/f-1...es-to-resume-shipments-drops-some-prices.html

So starting price isn't changing (Pro Trim) and the top spec price isn't changing (Platinum). $5500 lower is only on the 'Flash' trim to $68k and smaller reductions on XLT (2000) and Lariat (2500).

I'd love to see a real world comparison of a 68k Flash trim F150 to a $69k R1T DM Standard pack.

 

[MidnightRivian]

All Rivian needs to do is release the explore edition which should be $3000 cheaper and priced below the comparable Ford Lightning.

 

[Dustyshades]

I still can’t believe people are investing in a car manufacturer like a tech growth stock. Crazy

 

[DuoRivians]

https://www.cnbc.com/2024/04/11/f-1...es-to-resume-shipments-drops-some-prices.html

So starting price isn't changing (Pro Trim) and the top spec price isn't changing (Platinum). $5500 lower is only on the 'Flash' trim to $68k and smaller reductions on XLT (2000) and Lariat (2500).

I'd love to see a real world comparison of a 68k Flash trim F150 to a $69k R1T DM Standard pack.

The headline is bigger than the bite

 

[LetsgoRIVN]

I still can’t believe people are investing in a car manufacturer like a tech growth stock. Crazy

Really ? Have you ever been in a Rivian ? It’s like driving an IPhone ?

 

[Dustyshades]

Really ? Have you ever been in a Rivian ? It’s like driving an IPhone ?

I mean I own one. That’s why I’m here. I love it. Rivian will be a great manufacturer and a successful company. The cars do have good tech, but that doesn’t mean that you should treat their company as a tech growth stock.

I mean look at other tech growth stocks - alphabet, Microsoft, Apple, Amazon, etc. Yes, they all develop tech, but what makes them growth stocks is that they have core competencies that they can expand into multiple other verticals.

What does Rivian have that they can use to expand into other businesses? I don’t see anything right now, which means we should expect them to grow and be valued like a car manufacturer and likely not the biggest car manufacturer either (they’ll probably never be a toyota, for example). So there’s some upside, but not insane upside. And it’s a long road to reach that upside too.

 

[DuoRivians]

I mean I own one. That’s why I’m here. I love it. Rivian will be a great manufacturer and a successful company. The cars do have good tech, but that doesn’t mean that you should treat their company as a tech growth stock.

I mean look at other tech growth stocks - alphabet, Microsoft, Apple, Amazon, etc. Yes, they all develop tech, but what makes them growth stocks is that they have core competencies that they can expand into multiple other verticals.

What does Rivian have that they can use to expand into other businesses? I don’t see anything right now, which means we should expect them to grow and be valued like a car manufacturer and likely not the biggest car manufacturer either (they’ll probably never be a toyota, for example). So there’s some upside, but not insane upside. And it’s a long road to reach that upside too.

No one is buying rivn because it’s a tech stock. Nor are tech stocks the only play. Most tech stocks are arguably overvalued and riding on AI hype currently.

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