Why stock getting hammered last few days?

[Hereforthesnacks]

Musk isn't a racist or a bigot. Candidly the amount of hate I see in this forum gives me pause as I consider the Rivian R2. Based on many who engage in this forum I almost get the impression the only reason to buy a Rivian is if you have some political aversion to Tesla. Not good IMHO.

Out of all the posts and threads on this forum, your takeaway is people are buying a Rivian because they have a political issue with Tesla?

lol - eh?

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[mdpa]

Out of all the posts and threads on this forum, your takeaway is people are buying a Rivian because they have a political issue with Tesla?

lol - eh?

Yes, Elon is mentioned more on this forum than on forum's focused on Tesla.

 

[Hereforthesnacks]

Yes, Elon is mentioned more on this forum than on forum's focused on Tesla.

You seem to mention him a lot.

 

[R2D2TOO]

This part of your post is completely false.

Vehicle demand is largely price inelastic. This means a small subsidy (and $7K is small) is not enough to significantly change consumer behavior.

What is happening is a result of people deciding they are not ready for an electric vehicle. The early adopters have adopted, and everyone else is not comfortable or ready. That's fine. Eventually, everyone will be ready.

And the truth is, there are significant drawbacks to electric vehicle ownership.. The infrastructure is not ready. The capabilities of electric vehicles are not equivalent to ICEVs. I suppose if you are willing to spend 100k on a Rivian, it may be sufficient. Many people can't afford that.

So which part of what I said is false?

“Global EV sales continue to rise.
What is currently happening in the US is a temporary reset of the market due to, well, short sighted political whims. We have ceded much EV technology growth to China, sadly.”

 

[mkhuffman]

So which part of what I said is false?

“Global EV sales continue to rise.
What is currently happening in the US is a temporary reset of the market due to, well, short sighted political whims. We have ceded much EV technology growth to China, sadly.”

It's pretty clear you are wrong about the cause of the temporary reset. I described the actual cause.

Also, the information coming out of China is highly suspect, and riddled with propaganda. They are definitely a competitive threat, but it is incorrect we have ceded anything to them at this point. Rivian can compete with them in a fair market situation. The bigger threat to Rivian, IMO, is the established auto makers who have resources well beyond what Rivian has.

 

[mkhuffman]

Used EV's sales are way up with the gas prices, many new to EV's snapping up off lease vehicles from the tax credit loophole. There will be even more hitting the market next year as most leases are 36 months. These people will live the plethora of advantages that EV's have (yes there are negatives too) and very likely want another EV, start to look at Solar PV and batteries for their home and maybe switch to Heat Pump HVAC too. The future is !!

Great points.

I agree the future is electric. And it is getting better. We are just not at ICEV - BEV parity yet.

 

[R2D2TOO]

It's pretty clear you are wrong about the cause of the temporary reset. I described the actual cause.

You expressed your opinion. Mine differs from yours.

 

[RivRyan]

I guess a bunch of glowing reviews saying R2 has the hallmarks of a car that could dethrone the Model Y weren't equal to the glorious R2 news the market was expecting today.

 

[Hereforthesnacks]

I guess a bunch of glowing reviews saying R2 has the hallmarks of a car that could dethrone the Model Y weren't equal to the glorious R2 news the market was expecting today.

Today’s movement is due to a general rotation out of AI stocks. Not the reviews.

It will trend back down to $14 or do. Then next real movement will be R2 sales numbers. FWIW - expectations seem to be modest.

 

[RivRyan]

Today’s movement is due to a general rotation out of AI stocks. Not the reviews.

It will trend back down to $14 or do. Then next real movement will be R2 sales numbers. FWIW - expectations seem to be modest.

I was mostly joking, but thanks.

That's good news. Glad to see AI getting hammered. Maybe having google searches do live but poorly written summaries of static wikipedia articles a billion times a day isn't actually efficient?

 

[Mark_AZR1T]

The issue is pretty straightforward. RJ said in Park City that Rivian won’t be gross-margin profitable until after the Georgia plant comes online, and that 160K+ units out of Normal isn’t enough to get them there. That’s the exact opposite of their earlier guidance claiming profitability in 2027. If you take his new comments at face value, that pushes any realistic profitability target out to around 2029.

Article: Rivian is also hoping to achieve its main goal with the R2: profitability. The EV maker lost $3.6 billion last year, while only delivering 42,247 vehicles.

After promising investors it would be profitable on an adjusted basis by 2027, Rivian earlier this year withdrew that target without disclosing a new time frame to achieve the milestone. That comes as its automotive segment lost about $6,000 per vehicle it delivered during the first quarter of this year.

Scaringe reconfirmed to CNBC that Rivian now expects to accomplish the target once a multibillion-dollar plant in Georgia ramps up. It's slated to begin production in late 2028 and could reach its full capacity by the end of this decade.

Scaringe said Rivian will reach profitability on a per-unit production basis with the R2 this year. But he said the company needs more scale than the 160,000 units already planned for the vehicle at its current plant in Normal, Illinois, to achieve gross margin profitability.

"Georgia brings the volume to generate the gross margin for the vehicle sales that covers everything," Scaringe said. "The good news is we start to really reduce our burn rate. That's the beauty of volume, and these vehicles all being cash flow positive at a vehicle level."


Article

 

[Hereforthesnacks]

I was mostly joking, but thanks.

That's good news. Glad to see AI getting hammered. Maybe having google searches do live but poorly written summaries of static wikipedia articles a billion times a day isn't actually efficient?

Stop messing with me. I’m still in coffee mode.

 

[VandalSibs]

The issue is pretty straightforward. RJ said in Park City that Rivian won’t be gross-margin profitable until after the Georgia plant comes online, and that 160K+ units out of Normal isn’t enough to get them there. That’s the exact opposite of their earlier guidance claiming profitability in 2027. If you take his new comments at face value, that pushes any realistic profitability target out to around 2029.

Article: Rivian is also hoping to achieve its main goal with the R2: profitability. The EV maker lost $3.6 billion last year, while only delivering 42,247 vehicles.

After promising investors it would be profitable on an adjusted basis by 2027, Rivian earlier this year withdrew that target without disclosing a new time frame to achieve the milestone. That comes as its automotive segment lost about $6,000 per vehicle it delivered during the first quarter of this year.

Scaringe reconfirmed to CNBC that Rivian now expects to accomplish the target once a multibillion-dollar plant in Georgia ramps up. It's slated to begin production in late 2028 and could reach its full capacity by the end of this decade.

Scaringe said Rivian will reach profitability on a per-unit production basis with the R2 this year. But he said the company needs more scale than the 160,000 units already planned for the vehicle at its current plant in Normal, Illinois, to achieve gross margin profitability.

"Georgia brings the volume to generate the gross margin for the vehicle sales that covers everything," Scaringe said. "The good news is we start to really reduce our burn rate. That's the beauty of volume, and these vehicles all being cash flow positive at a vehicle level."


Article

I thought that something like this was reported when the deal with Uber was announced, as that I'm sure added some costs in for Rivian (developing a robotaxi version of R2 isn't gonna be free I'm sure....).

 

[savethemanual]

The Stock Market is a giant scam....just saying. Ha

 

[SANZC02]

The issue is pretty straightforward. RJ said in Park City that Rivian won’t be gross-margin profitable until after the Georgia plant comes online, and that 160K+ units out of Normal isn’t enough to get them there. That’s the exact opposite of their earlier guidance claiming profitability in 2027. If you take his new comments at face value, that pushes any realistic profitability target out to around 2029.

Article: Rivian is also hoping to achieve its main goal with the R2: profitability. The EV maker lost $3.6 billion last year, while only delivering 42,247 vehicles.

After promising investors it would be profitable on an adjusted basis by 2027, Rivian earlier this year withdrew that target without disclosing a new time frame to achieve the milestone. That comes as its automotive segment lost about $6,000 per vehicle it delivered during the first quarter of this year.

Scaringe reconfirmed to CNBC that Rivian now expects to accomplish the target once a multibillion-dollar plant in Georgia ramps up. It's slated to begin production in late 2028 and could reach its full capacity by the end of this decade.

Scaringe said Rivian will reach profitability on a per-unit production basis with the R2 this year. But he said the company needs more scale than the 160,000 units already planned for the vehicle at its current plant in Normal, Illinois, to achieve gross margin profitability.

"Georgia brings the volume to generate the gross margin for the vehicle sales that covers everything," Scaringe said. "The good news is we start to really reduce our burn rate. That's the beauty of volume, and these vehicles all being cash flow positive at a vehicle level."


Article

I must have missed where he said they would be profitable in 2027. I recall that they were expecting to be profitable on the R2 builds which he reconfirmed.

Does anyone have a link to the announcement previously stating that the company would be profitable in 2027? Just curious if this is just another article misstating the original announcement.

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