Rivian May Lose Nasdaq 100 Spot After 90% Selloff, JPMorgan Says

[evguy]

Costs of building a new factory is not counted as a loss. It’s a capital expense. Common error among fanbois. Tesla fanbois used to came back with this one for years when Tesla had losses.

Do you have a better answer? Like list of itemized losses per vehicle? All I did was quote a well know fact. If you want to refute it, then use real data. Otherwise, move on. There is plenty of content to comment on.

The cost of operating the factory is largely fixed. They currently have a "loss" on every vehicle sold because they're producing less than 1/3 of the volume the factory can handle. The per vehicle loss will become a profit after production volume gets closer to capacity - the fixed costs will be spread across many more vehicles produced. Rivian explained this in the Q4 shareholder letter:

Our total cost of goods sold was also negatively impacted by the ramping of our second manufacturing shift. As we produce vehicles at low volumes on production lines designed for higher volumes, we have and will continue to experience negative gross profit driven by labor, depreciation, and overhead costs.

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[izgoy]

The cost of operating the factory is largely fixed. They currently have a "loss" on every vehicle sold because they're producing less than 1/3 of the volume the factory can handle. The per vehicle loss will become a profit after production volume gets closer to capacity - the fixed costs will be spread across many more vehicles produced. Rivian explained this in the Q4 shareholder letter:

Our total cost of goods sold was also negatively impacted by the ramping of our second manufacturing shift. As we produce vehicles at low volumes on production lines designed for higher volumes, we have and will continue to experience negative gross profit driven by labor, depreciation, and overhead costs.

This is a much better explanation than "Rivian is spending all their money on building factories".

 

[WSea]

Kicked out on June 20th

 

[riviantogo]

Funds that track to this index will have to sell and hit the stock harder. I’ll be buying more at that point.

This should be a good buying opportunity, that is, as soon as they are dropped from the 100. It's hard to value the stock right now, but when it drops due to those required sales, it will likely be in oversold territory.

 

[riviantogo]

This should be a good buying opportunity, that is, as soon as they are dropped from the 100. It's hard to value the stock right now, but when it drops due to those required sales, it will likely be in oversold territory.

I see it already happened yesterday . . .

 

[WooHoo!]

As expected, a nice dip is happening for those who are watching to buy RIVN.

 

[MidnightRivian]

I'm ready to load up on shares before and after earnings. I need our short hedge fund friends to bring it down to cash value on hand. So lets aim for about $11.

 

[Tahoe Man]

What kind of valuation should Rivian have when it loses more on each vehicle it sells than the gross proceeds it receives from the sale of each vehicle? This is unsustainable in the short term, not to mention the long term.

I hear the Rivian’s valuation is equal to its assets. That’s what it should be, as there is no path to profitability unless something changes drastically.

More importantly is what will the demand be. WSJ had an article that wasn't exactly bullish.

At this point, I would like to get my money back. If it gets to about $22, I will. I bought in very small at $26 and $19. This thing has been a total disaster.

 

[SciGuy]

Anyone bought when the price was around $14 now celebrating?

 

[kylealden]

Anyone bought when the price was around $14 now celebrating?

I grabbed around a thousand shares at $13 and change, so I'm pretty happy

Still underwater on the stock overall due to going in too enthusiastically during the early EV Madness stages, but I've got most of it back. Still hoping to hold for the long haul.

 

[evguy]

Anyone bought when the price was around $14 now celebrating?

Me! My average cost is 14.58. Wondering if this week's action means 24 is the new 14.

 

[SciGuy]

I grabbed around a thousand shares at $13 and change, so I'm pretty happy

Still underwater on the stock overall due to going in too enthusiastically during the early EV Madness stages, but I've got most of it back. Still hoping to hold for the long haul.

Wow nice. I agree this is a long term story. I’ll be buying more if things go lower from here.

 

[SciGuy]

Me! My average cost is 14.58. Wondering if this week's action means 24 is the new 14.

Congrats!! I’m with you on it seemingly settling in at $24-$25. I’ve picked up some more shares at this level and would be fine if it goes down some more to get more in lower but hopefully the days of less than $20 are behind us.

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