Worried about buying a Rivian if the company fails

[Ocean]

I’ve found a Launch Edition R1T exactly as I’d spec it and have negotiated the dealer down to a price I’m happy with. Then… last night I started watching YouTube videos about the financial health of the company and it really has me reconsidering whether buying any Rivian is a good idea.

First video I watched:


And then the sequel:


Tldr; basically Rivian loses money on every car produced. They have blown through most of the cash they raised in their IPO, and the stock is now down 90% from IPO. Given demand concerns, high interest rates, and questionable ability to raise more money… it looks like Rivian maybe has 2 years left to live.

I’m curious how other owners have thought about this risk, and if you made the purchase how you rationalized the decision. If the company went bankrupt it would be near impossible I imagine to get it serviced and of course the value of an expensive car would tank.

A penny for Rivian Forum users thoughts?

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[Polar]

So … don’t buy one.
Problem solved.

 

[jjswan33]

So you watched two videos from the same source, likely a short seller and you are going to make a buying decision based on that?

If you are worried about the company just lease one direct from Rivian, if they fail you turn it in at the end and your done but you got to drive a great truck for 3 years. Besides the lease deals on 2023 R1Ts are fantastic right now.

 

[Redline]

Please...please...please stop using these con artists videos as financial advice. They are nothing more than click generators.

 

[OverEasyGoing]

Look, there's always a risk. You'll have 1000 people on here tell you their car is amazing and you'll love yours - and they're right. But the risk absolutely remains.

TBF, I only watched a few minutes of the sequel video but it's pretty clear the guy is pot committed to his bearish take and more importantly, knows nothing about manufacturing. I browsed the latest videos from Wall Street Millenial and there is not a single video that doesn't have some click bait title not involving "failure," "bankrupty, "implosion," "flopped," "crash," etc. It's an insane doom loop of negativity. I would avoid any more videos from that guy.

Rivian has taken huge steps to prevent insolvency. They're innovating, streamlining efficiencies, enjoying very high pre-order numbers for the R2 and haven't even opened reservations for the R3, which arguably got a warmer reception than even the R2. Pausing the Georgia plant was a wise move. They're making moves to operate smarter, faster and leaner. Yes, they could be out of business in 3 years but it's looking a lot less likely.

 

[Ocean]

Well you could just read a financial statement to see that the company is materially struggling.

Good point on a lease, that may be the way to go.

 

[Redline]

Well you could just read a financial statement to see that the company is materially struggling.

Good point on a lease, that may be the way to go.

Rivian can raise as much money as they want at this point.

Will it suck as a shareholder? Yes.

The company isn't going anywhere.

 

[Cycliste]

Rivian won’t just disappear. Proven products, proven manufacturing, proven servicing is just too valuable to fade away. Rivian can do a capital raise if needed, or it could be a merger play.

 

[gvtucker]

I have thought about this, yes. I don't think it is a **major* concern, though. Plenty of automakers have gone bankrupt over the years. The key is to get to a large enough installed base that the assets would have value to a purchaser. And I believe that the installed base of Rivians is plenty large enough to mitigate any significant worries.

 

[NY_Rob]

You're worried about Rivian going belly up?

Fisker says "hold my beer"

Fisker is penny stock now and is down to 6 cents today.

Topping that, Henrik's mansion in Cali is up for sale now:
https://www.amlu.com/2024/04/13/henrik-fisker-puts-l-a-home-on-the-market-for-35m/

 

[Ocean]

A merger is possible though anyone’s guess as to how that shakes out. I disagree that they can easily issue more stock. You’re underestimating the challenge that companies with poor financials have during a deteriorating market.

That said, it is clear the poster of these videos does seem to be strongly negatively biased in all their content, which I missed.

I’ve got a couple days to consider as I put a refundable deposit down. Really appreciate everyone’s points.

 

[EBEG]

GM almost folded in 2009 so anything is possible, but Rivian is in a pretty good place to survive all things considered. At this point there are more than 100,000 Rivians. Even if the company folded there would still be decent third party support, but you would have to pay for it.

 

[Rividiculous]

Life is full of risks. It’s not impossible that Rivian could go under. That said, it’s an amazing vehicle—which bodes well for the company long term. (I never saw a Fisker but I have never wanted to. The product doesn’t strike me as impressive. Nor does the company.)

Don’t miss out on a Rivian if you can afford the risk (and if you can afford an expensive vehicle in the first place).

 

[Chewy734]

Fisker says "hold my beer"

Fisker stock is down to 6 cents today, and Henrik's mansion in cali is up for sale now:
https://www.amlu.com/2024/04/13/henrik-fisker-puts-l-a-home-on-the-market-for-35m/

There’s a large Fisker building like a half mile from my home. I wonder when they’ll remove the logo on it. It’s a really nice looking building too, so I’m curious what company will come in afterwards.

 

[jbl911]

There is a risk and a lot of uncertainty, I decided to try to help out. Its a great product and brand.

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