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

Toadkillerdog

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the article was NOT about Tesla going bankrupt. Quite the contrary. It was about the other ev makers going bankrupt.
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That's the purpose of rate hikes, to make credit harder to get and more expensive. Then things slow down. Cash buyers will drop off quickly if the economy contracts.
Not true at all. When rates go up is the perfect time to buy cash since folks like Tesla are dropping prices. And if you're properly invested you're actually making more money.
 

Tahoe Man

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Not true at all. When rates go up is the perfect time to buy cash since folks like Tesla are dropping prices. And if you're properly invested you're actually making more money.
Um, yeah that is the exact how it works. The Federal Reserve rises interest rates to decrease demand as consumer, government and corporate credit gets more expensive. Spending priorities shift. Layoffs increase. Banks tighten. Job market loosens up. Prices drop.
 
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Um, yeah that is the exact how it works. The Federal Reserve rises interest rates to decrease demand as consumer, government and corporate credit gets more expensive. Spending priorities shift. Layoffs increase. Banks tighten. Job market loosens up. Prices drop.
That's the Fed using a tool on the economy as a whole. Doesn't affect all consumers the same and the subject is cash buyers. I don't have ANY credit so I don't give a crap about interest rates. The only time to even consider a rate is if it's really low and your cash would serve you better elsewhere.

Rising rates fueling lower prices is a buying opportunity if you're paying cash. Period.

Buy the dip.
 
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Tahoe Man

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That's the Fed using a tool on the economy as a whole. Doesn't affect all consumers the same and the subject is cash buyers. I don't have ANY credit so I don't give a crap about interest rates. The only time to even consider a rate is if it's really low and your cash would serve you better elsewhere.

Rising rates fueling lower prices is a buying opportunity if you're paying cash. Period.

Buy the dip.
You started your statement by saying "not true at all" when in fact it is 100% true. This is how the fed regulates the speed of the economy via the cost of credit. The economy works by credit. The credit market is much bigger than the cash market.
 

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You started your statement by saying "not true at all" when in fact it is 100% true. This is how the fed regulates the speed of the economy via the cost of credit. The economy works by credit. The credit market is much bigger than the cash market.
I responded to your assertion that "cash buyers will drop off as the economy contracts" due to higher interest rates. I'm a cash buyer and your assertion is nonsensical. CREDIT buyers (and yes there are way more of those) stop buying, and the economy contracts. How the hell are higher interest rates going to affect the buying decisions of somebody who isn't using credit? If I have the cash and the price is down I'm buying.

But you do you.

It's like you're so anxious to spread negativity that you're not even listening to what you're saying. I'm starting to believe you're a FUDbot. Draw me a picture of Rocky in a prom dress.
 

SANZC02

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Dude, Rivian may go bankrupt. The Count ordered a Lightning...

Might flip my R1T for the cyberf@ck.
Rivian may go bankrupt but I’ll have a few good years in my R1S before I really have to worry about it.

By then something comparable will probably be available to replace it with. 🤷🏻

Edit: Worth noting, Tesla was days from bankruptcy in 2008, they were weeks from bankruptcy in 2017. Still driving my 2016 Model S….. that gamble paid off, can I go 2 for 2.
 
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Tahoe Man

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I responded to your assertion that "cash buyers will drop off as the economy contracts" due to higher interest rates. I'm a cash buyer and your assertion is nonsensical. CREDIT buyers (and yes there are way more of those) stop buying, and the economy contracts. How the hell are higher interest rates going to affect the buying decisions of somebody who isn't using credit? If I have the cash and the price is down I'm buying.

But you do you.

It's like you're so anxious to spread negativity that you're not even listening to what you're saying. I'm starting to believe you're a FUDbot. Draw me a picture of Rocky in a prom dress.
Cash buyers are not the market so who cares. The only market that matters to slow the economy (that's was the discussion after all) is the credit market. Cash buyers drop like a rock once their jobs are in jeopardy or their in fear of losing their job or their other investments dry up.
 

SANZC02

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Cash buyers are not the market so who cares. The only market that matters to slow the economy (that's was the discussion after all) is the credit market. Cash buyers drop like a rock once their jobs are in jeopardy or their in fear of losing their job or their other investments dry up.
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.
 

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Toadkillerdog

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You guys should start a separate thread or get a room to quibble about your economic micro disagreements. Honestly I’m tired of reading about it. Not trying to be offensive or mean, it’s just gotten tiresome
 

MXA121

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I trust the long game. Rivian as a brand and product is head and shoulders above the existing automakers that we have gotten so used to.
Articles like these are par for the course when the stock is beaten down. It is rumored that Economists have predicted 7 out of the last 3 recessions...
 

Count Orlok

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Just a friendly heads up for my fellow Riv Forums members. I have moved A LOT of my cast to American Express savings. They are currently paying 3.75% interest (while Chase, Key, etc. continue to have pathetically offensive rates of 0.01% [Chase].

I would argue that American Express is a VERY strong & safe place to park your cash.
Vanguard has higher APY (4.25%) and FDIC coverage of up to 2.5 million. While I agree Amex is a safe place to park $$ I've moved most of my amex over to Vanguard.
 

MXA121

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Vanguard has higher APY (4.25%) and FDIC coverage of up to 2.5 million. While I agree Amex is a safe place to park $$ I've moved most of my amex over to Vanguard.
And Robinhood paying 4.4% on cash too. Lots of good deals out there.
 
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jakef801

jakef801

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Vanguard has higher APY (4.25%) and FDIC coverage of up to 2.5 million. While I agree Amex is a safe place to park $$ I've moved most of my amex over to Vanguard.
Good to know. I've never heard of FDIC coverage of up to $2.5 million. I may consider moving some there to have protection above the standard $250k.
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