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WSJ Article: A High-Speed EV Crash

MountainBikeDude

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SunDevil2213

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What is the point of posting a paywalled article?
 

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Regardless, in the case of this article, it was short, superficial, leftover information. Click bait. Disappointing coming from the WSJ.
 

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What is the point of posting a paywalled article?
Nothing new in the article. No new research or information. Absolutely no calculations or numbers indicating where they really are in terms of cash flow, supply chain negotiations, etc.

They mention the lack of new govt subsidies, slower ramp up than investor expectations, slashed production forecast (did Rivian ever provide a forecast that was higher than 25k vehicles in 2022?), rocketing raw material prices, competition coming on line.

In the end summarizes as follows:

"Many great companies survive rough markets, and Rivian may ride this one out and prosper. But its stock rise and fall is a warning about too much money chasing too little profit too soon. "

Hard to disagree. Rivian IPO'd at a perfect time. They have cash on hand, more than any company in my memory. To me, the overwhelming problem seems to be supply chain/raw material price increases and availability, not the lack of subsidies, or ramp up rate, competition coming on line.

Only seeing data here in this forum, my sense is Q2 production rates are ramping up well, and may be exceeding our limited expectations (ie, could indicate higher than 25k vehicles this year), providing some limited, but good news.

Rivian's is closer to the real world in market valuations now. I really doubt Rivian will ever have Tesla+++ type multiples again in their stock price. Rivian wont' ever have another chance to raise cash like they did in IPO, but honestly, does anyone deserve this type of valuation? But I see no reason to give up on Rivian as a company.
 

Jac

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Nothing new in the article. No new research or information. Absolutely no calculations or numbers indicating where they really are in terms of cash flow, supply chain negotiations, etc.

They mention the lack of new govt subsidies, slower ramp up than investor expectations, slashed production forecast (did Rivian ever provide a forecast that was higher than 25k vehicles in 2022?), rocketing raw material prices, competition coming on line.

In the end summarizes as follows:

"Many great companies survive rough markets, and Rivian may ride this one out and prosper. But its stock rise and fall is a warning about too much money chasing too little profit too soon. "

Hard to disagree. Rivian IPO'd at a perfect time. They have cash on hand, more than any company in my memory. To me, the overwhelming problem seems to be supply chain/raw material price increases and availability, not the lack of subsidies, or ramp up rate, competition coming on line.

Only seeing data here in this forum, my sense is Q2 production rates are ramping up well, and may be exceeding our limited expectations (ie, could indicate higher than 25k vehicles this year), providing some limited, but good news.

Rivian's is closer to the real world in market valuations now. I really doubt Rivian will ever have Tesla+++ type multiples again in their stock price. Rivian wont' ever have another chance to raise cash like they did in IPO, but honestly, does anyone deserve this type of valuation? But I see no reason to give up on Rivian as a company.
The vehement anti-EV/political comments by readers about the article on the WSJ website are really astounding. 95% haters.
 

SunDevil2213

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Nothing new in the article. No new research or information. Absolutely no calculations or numbers indicating where they really are in terms of cash flow, supply chain negotiations, etc.

They mention the lack of new govt subsidies, slower ramp up than investor expectations, slashed production forecast (did Rivian ever provide a forecast that was higher than 25k vehicles in 2022?), rocketing raw material prices, competition coming on line.

In the end summarizes as follows:

"Many great companies survive rough markets, and Rivian may ride this one out and prosper. But its stock rise and fall is a warning about too much money chasing too little profit too soon. "

Hard to disagree. Rivian IPO'd at a perfect time. They have cash on hand, more than any company in my memory. To me, the overwhelming problem seems to be supply chain/raw material price increases and availability, not the lack of subsidies, or ramp up rate, competition coming on line.

Only seeing data here in this forum, my sense is Q2 production rates are ramping up well, and may be exceeding our limited expectations (ie, could indicate higher than 25k vehicles this year), providing some limited, but good news.

Rivian's is closer to the real world in market valuations now. I really doubt Rivian will ever have Tesla+++ type multiples again in their stock price. Rivian wont' ever have another chance to raise cash like they did in IPO, but honestly, does anyone deserve this type of valuation? But I see no reason to give up on Rivian as a company.
Thanks for the summary!
 

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The vehement anti-EV/political comments by readers about the article on the WSJ website are really astounding. 95% haters.
Many people feel like EVs are being forced upon themā€¦and they hate hate hate the subsidies and piety.
 

Gator42

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Regardless, in the case of this article, it was short, superficial, leftover information. Click bait. Disappointing coming from the WSJ.
Unfortunately itā€™s been their MO for a few years and why I quit after 30+ yearsā€¦

ā€¦but credit to Dan Neil for getting me off the Rivian fence and putting down my deposit early onā€¦
 
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Dark-Fx

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Many people feel like EVs are being forced upon themā€¦and they hate hate hate the subsidies and piety.
It's easy to take advantage of the subsidies though... Rivian was my 4th $7500 credit.
 

Gator42

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It's easy to take advantage of the subsidies though... Rivian was my 4th $7500 credit.
ā€¦as I learned as an undergrad in Ec10 people respond to incentives. Iā€™ll say for my own experience Iā€™m happy to get it but Iā€™m not sure it was a factor in my purchase decision. Part of the objection is the need for a government funded rebate on relatively expensive vehicles, especially when demand is outstripping supplyā€¦
 

Dark-Fx

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but Iā€™m not sure it was a factor in my purchase decision.
For me it's been a driving factor, but not a deciding factor.
 

Jac

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ā€¦as I learned as an undergrad in Ec10 people respond to incentives. Iā€™ll say for my own experience Iā€™m happy to get it but Iā€™m not sure it was a factor in my purchase decision. Part of the objection is the need for a government funded rebate on relatively expensive vehicles, especially when demand is outstripping supplyā€¦
ā€¦ which, of course, is why the various proposals in Congress that would have updated the EV tax credits included MSRP caps for eligibility. Iā€™m pretty sure for most $80,000+ vehicle buyers the tax credit isnā€˜t critical in the purchase decision.
 

Gator42

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ā€¦ which, of course, is why the various proposals in Congress that would have updated the EV tax credits included MSRP caps for eligibility. Iā€™m pretty sure for most $80,000+ vehicle buyers the tax credit isnā€˜t critical in the purchase decision.
ā€¦and yet here we are and the persistence of not unfounded objectionsā€¦
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