Rivian Could Be on the Brink of a Huge Rally: Why It's a Buy Now (according to Motley Fool)

[evguy]

https://www.fool.com/investing/2023/03/21/rivian-could-be-on-the-brink-of-a-huge-rally-why-i/

As someone who recently went long on Rivian stock, I sure hope this assessment is accurate. Hoping that increased production rate, beginning deliveries of dual motor and Max Pack variants, and post-price increase orders making up a larger portion of deliveries will all conspire to significantly reduce the per vehicle "loss" and begin to change Wall St's tune.

I read somewhere that, at this point during the Model 3 production ramp, Tesla was already making an operating profit. I'm no expert, but that seems like apples and oranges. If I recall, Tesla had about six years of Model S/X sales by that point, and it was scaling production capacity along with production (remember the extra "tent" they built in Fremont during "production hell"?) By contrast, Rivian started sales with the capacity to produce 150,000 units a year at Normal, hence a lot more overhead to soak up during production ramp.

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[Dark-Fx]

I think Rivian getting through their backlog of price-protected pre-orders is going to be the most important thing to their future profitability.

 

[evguy]

I think Rivian getting through their backlog of price-protected pre-orders is going to be the most important thing to their future profitability.

No doubt that's important, but I'm not sure that's what's holding the stock back at the moment. Getting through the early orders is inevitable, but bending other parts of the cost curve while sustaining demand amidst increasing competition isn't. I'm optimistic since Rivian has a kick-ass product (niggling early adopter issues aside) and won't have to manage a transition away from ICE business.

 

[DuoRivians]

Hopefully, this 12v battery issue going around is resolved soon and without impacting the stock.

Seems like the factory is churning out cars much faster lately!

 

[evguy]

Hopefully, this 12v battery issue going around is resolved soon and without impacting the stock.

Seems like the factory is churning out cars much faster lately!

That's my sense, too. My guess is they're eager to report Q1 numbers that are slightly ahead of pace for the annual forecast.

 

[s00n]

Delivering all these post-Mar 22 R1s lately will definitely help Q1 numbers.

 

[SDH]

Well if Motley Fool says so, then it must be true! Now just wait for Cramer and you've got the strongest 'buy' signal yet.

(N.B. please say you detected the sarcasm before you actually make an investment decision)

 

[evguy]

Sarcasm noted! Don't worry, I only base my investment decisions on my own poor instincts.

 

[DuoRivians]

Well if Motley Fool says so, then it must be true! Now just wait for Cramer and you've got the strongest 'buy' signal yet.

(N.B. please say you detected the sarcasm before you actually make an investment decision)

Cramer already said to dump RIVN

 

[Insight75]

Well folks I'm trying to help.....pick up my R1T tomorrow and paid full price. Can't wait.

 

[bgoldber88]

Well folks I'm trying to help.....pick up my R1T tomorrow and paid full price. Can't wait.

Haha I'm trying to help too. Just confirmed yesterday for my full-price R1T with a lot of options.

I like Rivian a lot. I feel like they're hitting a segment that could be incredibly fruitful in the US and Canada. Look at how many Jeeps and 4Runners there are everywhere, even in Chicago! I really hope they succeed.

 

[JohnB R1T]

Cramer already said to dump RIVN

My broker's on my speed dial. If Cramer said "dump Rivian" I'm putting in a long buy order at the current price.

 

[evguy]

Well folks I'm trying to help.....pick up my R1T tomorrow and paid full price. Can't wait.

Congrats (and thanks)!

 

[Insight75]

I'm a little confused about the EU and couldn't find much info. What is the plan to ramp up there?

 

[Guy]

I'm a little confused about the EU and couldn't find much info. What is the plan to ramp up there?

International sales (outside of Canada) will likely be well into the future because a) the R1T is too big for European markets and b) expansion will involve a lot of expense which they can ill afford until 2027.

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