Ford "PRICE WAR" drives RIVN under $10

[AllInev]

I know but it must be concerning to management since capital markets are a source of financing. Hard to believe that we are trading @8.5 after
R2 release
R2 price down to $45k
R3 surprise
$2.5bn cost saving
Beating Q1 2024 estimates

Unfortunately, the downward pressure on RIVN will persist until Rivian shows an obvious path to profitability. It seems investors aren't interested in the potential of R2 and R3 lines.

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[jjswan33]

23% short interest. I'm going to keep buying and holding

That's up from 18% in March, at least that is what I had seen. Also looks like 2/3 of volume over the last three trading days is shorts.

They are actively betting against RIVN because of the Tesla earnings, Ford price cuts and potential Tesla layoffs. At some point though the EV market is a market, whoever is making the cars people want to buy (Edit: and sell them for a profit) will win.

No news. Not buying more but not selling either.

 

[Honey]

What’s your avg cost ?

$16 with 1300 shares

 

[DuoRivians]

Continuing to purchase more today.

 

[LetsgoRIVN]

$16 with 1300 shares

About the same average for me, let’s hope we get back there sooner than later!

 

[beaker]

I'll make this easy for everyone...

Rivian good news = Rivian stock drops
Rivian bad news = Rivian stock drops
Tesla good news = Rivian stock drops
Tesla bad news = Rivian stock drops
Any EV manufacturer good news = Rivian stock drops
Any EV manufacturer bad news = Rivian stock drops
The market drops = Rivian stock drops
The market is up = Rivian stock drops

I think I covered all the bases ?

The market can remain irrational longer than one can remain solvent.

Anyway, considering my first RIVN position.

 

[Rivian Head]

Buying Rivian stocks now is like trying to catch a falling knife. It only has one revenue source plan; hoping consumers will buy R1 and R2. We have no idea of cost containment strategy or other income generating plan.

 

[Gen(R3)Xer]

"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."

This is beyond frustrating. A lot of day traders are just looking for a quick buck and they’re shorting stocks that they know are on the decline due to the economy, which is making matters worse. They’re literally hurting the financial prospects of a company and the SEC turns a blind eye.

I think shorting should be banned since the investor is hoping a company does poorly so they can use a loophole in the system to cash in.

You’re supposed to buy low and sell high, not borrow a security from your broker whose price you think is going to fall and then sell it on the open market, so that you can then buy the same stock back later, hopefully for a lower price than you initially sold it for, return the borrowed stock to your broker, and pocket the difference.

 

[evguy]

Buying Rivian stocks now is like trying to catch a falling knife. It only has one revenue source plan; hoping consumers will buy R1 and R2. We have no idea of cost containment strategy or other income generating plan.

Don't forget revenues from required deliveries of EDV to Amazon, plus RCV sales to other fleet customers. They're currently doing pilot programs with AT&T, DHL and others. In the Q4 disclosures and earnings call, they provided a very detailed cost reduction strategy. The question is, can they execute on that strategy?

 

[Rivian Head]

Don't forget revenues from required deliveries of EDV to Amazon, plus RCV sales to other fleet customers. They're currently doing pilot programs with AT&T, DHL and others. In the Q4 disclosures and earnings call, they provided a very detailed cost reduction strategy. The question is, can they execute on that strategy?

One of my nephews works for Rivian, and his job is dealing with Amazon as EDV sale has been losing money like crazy. So far every business Rivian is in has been losing money.
Until the Street regains confidence in Rivian’s plan toward profitability , it’s stock will continue to fall.

 

[evguy]

One of my nephews works for Rivian, and his job is dealing with Amazon as EDV sale has been losing money like crazy. So far every business Rivian is in has been losing money.
Until the Street regains confidence in Rivian’s plan toward profitability , it’s stock will continue to fall.

I agree 100% that the path to profitability is all that matters. Executing on cost reduction and announcing more RCV customers are two things they can do this year to show they're on the right track.

 

[Rivian Head]

Actually Tesla stock looks very attractive as it took massive beat down lately. Hopefully All the bad news are out; latest being layoff of 10 % workforce which is actually good for their bottom line. $99 monthly FSD on 2 million cars will generate high margin yearly revenue and likely to grow with licensing OEMs. With high interest rate not withstanding, Tesla has other revenue sources.

 

[Sgt Beavis]

Don’t know, we are in the unknown completely. I just hope 2 things not happening for now:
1 Amazon cancelling the deal and selling stocks
2 Rivian putting off R2

The R2 is essential to Rivian's strategy. That's why they're going to start building it in Normal and not Georgia. If the R2 is cancelled, it's because Rivian is filing for bankruptcy.

 

[LetsgoRIVN]

So Tesla lays off 10% of workforce
Tesla -4%
LCID -3%
RIVN -8%

 

[Philip]

"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."

Ford is also now the number one in recalls for a variety of issues and they are losing customers base.

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