Take it FWIW - Rivian, Tesla, and Fisker may go Bankrupt

[Big Bad VooDoo]

Im in the long haul with 2000 shares, most of the jobs that will suffer from this economic tightening will be lower income. Those are not the people that are buying 100K vehicles in the first place. Top of the line RAM 1500s like the Limited Version is 82K and TRX is 108K. Quite a few people buy them at that price and use them as grocery getters. Me included. The high end Rivian is to get people to notice them just like Tesla did with the unaffordable Roadster and Model S Plaid. The momentum will be with the everyday R2 platform (if they don't F it up). For crying out loud, Teslas price drops do not affect Rivians market at all. Model S is around 100K, Model X around 115K, Model 3 if you add paint is 63K, Model Y is at 55K and the Model 3 reminds me of a Camry at best and the Y looks like your computer mouse. CyberTruck is still not in production and will not be pulling business from Rivian in the slightest Because of the style. They charge 3K for extra unusable seats to cram your dog in maybe. Model S is sexy but has not change in 10 years, Tired of seeing Tesla and I am sure I am not alone. I would be worried about the RAM REV but that price point for the luxery model is still 100K. I know this sounds like a rant but I am posting it anyway. Take away, don't gamble with money you don't have.

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[pc500]

I can't speak for anywhere else in the country, but several people at the Rivian SC in SLC, UT. recently told me that the vast majority of Rivians being purchased in Utah are in the Park City area, which is the most affluent and highest median HH income county in the state. These are people that are very likely cash buyers and don't have to concern themselves with loans/interest rates. It would be interesting to know how many owners/buyers in the USA are getting financing on their Rivs. I, for one, used my HELOC to purchase mine and the rate has climbed to a whopping 6.75% rate. I'm selling a rental I own which is supposed to close in early May (knock on wood). Assuming in closes, I'm definitely going to pay off my HELOC with the proceeds.

Rate versus cash on hand really doesn't matter. Cost of capital does though. So if you can borrow at only 1% more than you can earn interest at it's the same effective outcome as having received a 0.99% loan before.

If the cost of capital is that low you have to decide whether you want to tie up the funds

 

[Donald Stanfield]

Only a fool would be a cash buyer for a toy unless their pockets are deep.

It should only be disposable income, if the Rivian purchase could impact their day to day budget or long term financial plans I would tell them to walk away (Cash or credit).

I would hope the bulk of the Rivian reservations comes from that deep pocket group.

Only someone with deep pockets can buy a 100k dollar vehicle in cash to begin with.

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