Nix
Well-Known Member
I like the fact that Rivian has cash - it means they can fund most of R2 manufacturing without having to go back to the markets too much (hopefully). If they can make that step, R2 should get them being profitable most quarters, similar to how the Model 3 program did for Tesla (but remember how many cash raises Tesla made to get the 3 finally rolling?)
Lucid (and other EV startups) on the other hand may need to keep going to the market, diluting existing shareholders.
I'm invested in both, but wish I had more $ to double-down on RIVN (though the way markets are behaving this week, I'd probably wait until next week to see what shakes out first).
Yes, the value in Rivian having cash is that it is a means to an ends of eventually becoming a successful profitable manufacturer of many R1 and R2 variants. It is a good thing they have that cash to hopefully achieve that end goal.
The cash itself is not the value. The value is the potential of what they can create with the cash -- that is the value. The potential is what to invest in, not the cash itself. The cash itself is going to go away. The investment is in what Rivian will have once the cash has been spent.
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