Not looking too good for continued operations beyond 2025

[Kevlar]

Nice FT article - https://www.ft.com/content/ff4002a9-57a3-448c-af49-f665f38340ae

- Rivian's CFO expects the company to earn a gross profit in 2023...enough cash to maintain operations through the end of 2025
- Rivian has become a key player in the economy of Normal, Illinois
- Market capitalization has dropped from $162bn to $12.5bn, yikes!
- Targets to produce 50,000 vehicles in 2023
- plenty of shortfalls in Rivian's ability to meet expectations while the market sees increasing competition

I was thinking about why I don't have my pre-ordered Rivian and it's because so many changes were made that the product is no longer what I wanted when i engaged the pre-order (may 2019). I can't be alone in how I feel.

What's the plan here? Ive been a fan for so long but this is just isn't feeling recession proof (as a product or as an investment). It's hard to say when enough is enough; macro or micro indicators have all been pointing in the direction of parting ways.

Are others just riding this out (to what ever exit becomes available)?

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[DuoRivians]

Oh jeez …

OP is on the IGNORE list now

 

[Dark-Fx]

lol

*Edit: Is this thread just anti-Rivian bait?

 

[mkg3]

Here's a similar article from Mrs Technica not behind the paywall:

https://arstechnica.com/cars/2023/0...e-town-that-holds-the-keys-to-rivians-future/

And it's been said during the earnings call that their current cash and cash equivalent reserve can take them through 2025. They plan to be profitable in 2024.

Regardless, Rivian WILL need to raise cash to continue beyond 2025. Most likely secondary issue (dilution) and credit line + more debt/bond sales. The fate of the company, as we know it today, will most likely be placed on R2 success.

 

[SparkyR1t]

Ignore the opinions of so called experts. Tesla was in a really bad position in 2015/2016 and almost failed. All the so called experts predicted they were going to go bankrupt.

if Rivian works on improving quality (same issue Tesla had back in 2015/2016) they will succeed and be an EV truck leader. My opinion

have faith in the product

 

[NY_Rob]

Can the OP at least fix the title... "too good" vs. "to good"? They mean different things.


Edit: Thank you for fixing it!

 

[COdogman]

OMG

 

[mkg3]

Ignore the opinions of so called experts. Tesla was in a really bad position in 2015/2016 and almost failed. All the so called experts predicted they were going to go bankrupt.

if Rivian works on improving quality (same issue Tesla had back in 2015/2016) they will succeed and be an EV truck leader. My opinion

have faith in the product

It's not the product. It's the management team and the leadership. So far they have not demonstrated that they can get on top of the production hell.

RJ maybe a bright engineer but as a 40 yrs old first time CEO, its a tall mountain to climb as the first stint executive.

 

[SunDevil2213]

There's literally zero point to posting a paywalled article.
Every time I hop in my beautiful Rivian R1T and clean my windshield with the wipers, I imagine the drops of the wiper fluid are the tears of all the financial bros who complain about Rivian's share price.

 

[SparkyR1t]

It's not the product. It's the management team and the leadership. So far they have not demonstrated that they can get on top of the production hell.

RJ maybe a bright engineer but as a 40 yrs old first time CEO, its a tall mountain to climb as the first stint executive.

Can’t disagree. But again I compare to Tesla and Elon who had a dream and worked to make it happen. Look at what Rivian does have in place after a few years in the design phase

actually I personally wish Tesla would become involved to some degree with Rivian and as many crazy things he does and says he does have the ability to quickly build and place into operation efficient production lines. Could call it the normal man’s pickup along side the cybertruck. LOL

 

[Dark-Fx]

actually I personally wish Tesla would become involved to some degree with Rivian and as many crazy things he does and says he does have the ability to quickly build and place into operation efficient production lines.

Are you forgetting about Tesla not yet mass producing three new models that were revealed 3.5-5.5 years ago?

 

[bummin]

Considering the US is supposed to default by June 1, I think Rivian is doing well forecasting out to 2025

 

[mzdds]

"my pre-ordered Rivian and it's because so many changes were made that the product is no longer what I wanted." You really mean this? What about it is not the product you looked at 4 years ago. To me, it's exactly what I thought it was 4 years ago.

 

[Franksmartin]

They plan to be profitable in 2024. Even if they did go bankrupt, which is unlikely, they are building the vehicles of the future while the old school ICE players fall behind. Worst case they get bought out by an ICE maker, Tesla or Amazon. They will have produced over 150k vehicles by the end of 2024, it’s highly unlikely they just go belly-up with no suitor.

They also have a nice order backlog to help them weather any rough waters over the next year.

Personally I think they will thrive, the vehicles are just too good and the R2 line is going to be a huge hit just as EVs go mainstream.

 

[NineElectrics]

Don’t worry; they can always add CarPlay to spike demand!

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