Rivian's next difficult decision will be whether to seek a buyer

[Tahoe Man]

It will be Amazon if anyone at all. Let the stock tank and buy them for the tech and infrastructure. It will be hard with a capital strapped world...

I could see that. Also, perhaps a foreign investor or automaker.

Sponsored

 

[DuoRivians]

So he's been right all along.

On ignore list now. Jfc

 

[AllInev]

EV maker Rivian may need a buyer: Cahill | Crain's Chicago Business

Article is paywalled, but the audio is not.

 

[Paradigm_Shift]

Apple as a potential buyer is very unlikely . They have been looking for a manufacturing partner with proven ability for mass production. I recall reading they had discussions with Hyundai and BMW. I can't imagine they would be interested in Rivian as they just don't have the skills /capabilities to execute at scale

 

[Guy]

Agreed. Amazon is likely but I wonder if someone like BMW would be interested since their image is not rugged off-road like Jeep or Subaru. Rivian does have that image and capability so they could be a niche brand of theirs, like Mini (and before that River).
This way they don’t overlap too much with the X range of vehicles.

 

[zipzag]

Apple as a potential buyer is very unlikely . They have been looking for a manufacturing partner with proven ability for mass production. I recall reading they had discussions with Hyundai and BMW. I can't imagine they would be interested in Rivian as they just don't have the skills /capabilities to execute at scale

Rivian's manufacturing management comes from the auto industry. Every new plant means building a new team, regardless of who does it.

https://www.linkedin.com/in/tim-fallon-6bb64851/

I'm sure Apple has talked to Magna and similar about making vehicles. It seems unlike that any established primary auto company would make cars for Apple.

 

[Autolycus]

Rivian's manufacturing management comes from the auto industry. Every new plant means building a new team, regardless of who does it.

https://www.linkedin.com/in/tim-fallon-6bb64851/

I'm sure Apple has talked to Magna and similar about making vehicles. It seems unlike that any established primary auto company would make cars for Apple.

There were rumors about detailed and lengthy talks with Hyundai-Kia, but those fell apart. From reports out of South Korea, no deal was ever even remotely close to happening.

Apple and Amazon would definitely be the most likely options but for different reasons. I'm not convinced Rivian needs someone to buy a controlling interest anyway, but if they decide that's the best path forward, I think Apple, Amazon, or some large investment fund with no existing car brand to be the choice.

 

[Donald Stanfield]

I think it’s far too early to even be discussing a takeover. All of the current happenings with Rivian have been planned already and getting cash now makes sense as the fed is going to continue hiking interest rates.

Everyone seems to be forgetting about the EDV contract that’s enough to carry Rivian itself for a couple years. That augmented with even slow R1 sales should take Rivian through the looming recession.

 

[kurtlikevonnegut]

I think it’s far too early to even be discussing a takeover. All of the current happenings with Rivian have been planned already and getting cash now makes sense as the fed is going to continue hiking interest rates.

Everyone seems to be forgetting about the EDV contract that’s enough to carry Rivian itself for a couple years. That augmented with even slow R1 sales should take Rivian through the looming recession.

Someone else also mentioned that the EDV is priced at a cost+margin value, so if they got into a pinch they could focus 100% on EDV builds and significantly cut their losses.

 

[jeeden]

Another option here is not a buyout, but another cash injection from Amazon. They could come out saying how happy they are with the delivery vehicles they have gotten and want to double down on the future of EV. Gets them more good press, gives Rivian a chance to get wall street off their backs, lots of wins all around. It's not like they are going to do anything else with the cash, they (and Apple) are frankly too big to acquire any companies or industries without raising antitrust issues or other eyebrows.

 

[Tahoe Man]

Another option here is not a buyout, but another cash injection from Amazon. They could come out saying how happy they are with the delivery vehicles they have gotten and want to double down on the future of EV. Gets them more good press, gives Rivian a chance to get wall street off their backs, lots of wins all around. It's not like they are going to do anything else with the cash, they (and Apple) are frankly too big to acquire any companies or industries without raising antitrust issues or other eyebrows.

Rivian went public for cash. In exchange for that, they'll have shareholders on their back. You can't have it both ways. They don't want Wall Street, then take the company private.

 

[Tahoe Man]

Seems to me to be a local news site covering their hometown company. Valid points, but I don’t know who is going to buy them. Ford sells 12x more trucks than Rivian will in 2023 and is already the number two EV manufacturer in the US. The Japanese or Koreans don’t need Rivian. Geely is a good fit, but doesn’t have the money, nor do they need Rivian. Maybe the Germans would be interested if the price were right, but I would be surprised.

Rivian’s best bet is to go the Tesla route: turn the hype train up to 11, pump more unrealistic products, and then sell billions in stock on the secondary market. Maybe claim you’re an energy company, or something. Sell flamethrowers.

The problem is the EV mania has finally crapped out.

 

[Freddie]

It will be Amazon if anyone at all. Let the stock tank and buy them for the tech and infrastructure. It will be hard with a capital strapped world...

Prime delivery! Order today and get it tomorrow

 

[dfx]

Another option here is not a buyout, but another cash injection from Amazon. They could come out saying how happy they are with the delivery vehicles they have gotten and want to double down on the future of EV. Gets them more good press, gives Rivian a chance to get wall street off their backs, lots of wins all around. It's not like they are going to do anything else with the cash, they (and Apple) are frankly too big to acquire any companies or industries without raising antitrust issues or other eyebrows.

The recent Green Bond issuance by Rivian was a convertible and done in a private placement. This may well show up on the purchaser's 1st quarter earnings filings. This should giva a clue as to who the most likely suitor would be.

 

[SciGuy]

Land Rover / Tata might make sense.

Sponsored