Rivian Layoff 10% Staff and Lowers Production Forecast for 2024

[Dark-Fx]

Nope I am a long term shareholder but he is frustrating. Check this out

I find it weird when long term shareholders only come to stir up more negative sentiment.

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[COdogman]

Disaster for shareholders and I blame RJ for misleading and lying.

Sue him and Rivian….along with the leadership of every public company on earth who give essentially the same answers.

 

[White Shadow]

What's a non-alarming rate for spending cash at a new car company?

That's a great question and I wish I had an answer. But my point is that profitability will never happen when a company is losing money on every vehicle they sell. One of the negatives of EVs is that they will NEVER make as much money for the manufacturer when it comes to the service side the way that it does for ICE manufacturers. That's great for consumers, but not so great for shareholders or the company itself. It's pretty well known in the industry that the real money is on the service side, not the sales side of the business. I don't think that will ever be true for EVs though...

 

[emoore]

Nope I am a long term shareholder but he is frustrating. Check this out

All you have really done is complain about RJ, Rivian and the stock price. If you don't like where the company is headed or what they are doing I don't know why you don't just sell your shares and move on.

 

[emoore]

That's a great question and I wish I had an answer. But my point is that profitability will never happen when a company is losing money on every vehicle they sell. One of the negatives of EVs is that they will NEVER make as much money for the manufacturer when it comes to the service side the way that it does for ICE manufacturers. That's great for consumers, but not so great for shareholders or the company itself. It's pretty well known in the industry that the real money is on the service side, not the sales side of the business. I don't think that will ever be true for EVs though...

Why are you assuming that because they are losing money for every vehicle they sell that will be the case going forward. Tesla was in the same boat for many years and they eventually got to making a profit. It's going to take time with a startup.

 

[White Shadow]

not from when they stared selling the S. Much less than 17 years.

Okay, that's 2012 to 2020. So eight years if you want to go by the starting point for Model S sales.

 

[Epicloop]

Why would Rivian not come up with and offer an accessory battery pack that could slide in the gear tunnel and add another 150 miles of range give or take to help sale those on the fence that need towing and have range anxiety ? This could be a high profit accessory that customers would be willing to pay to have peace of mind.

They already have the longest range of any available EV pickup.
They do have a patent on a range extender but as others have said adding 150 miles would diminish any payload.
Do you really need 560 miles of range?

 

[emoore]

Okay, that's 2012 to 2020. So eight years if you want to go by the starting point for Model S sales.

Yep sounds about right. I think they had a quarter or two before 2020 where they were profitable. 2020 is their first entire year of profitability. Maybe Rivian can shave a year or two off that since they have EVDs and Tesla didn't. So we are looking 2027-2028 for a few quarters and then 2029-2030 for the first year of profitability.

 

[downranger12]

What am I missing? Sharers tanked but it looks like it's at $15.39.

I see these as positive things. Rivian is making adjustments to ensure they are on target to launch R2. That Georgia factory is going to cost a lot of money and they're going to need to hire a lot of folks to work it.

I think there will be cost cutting that occurs this year and they're going to look to continue to bring down losses. We're still early in the year though and a lot of things can change. First of all, gas prices are down from last year, which I believe is why we are seeing all the negative sentiment from the news media. When gas prices are low nobody needs EVs. Then when gas prices are four and $5 a gallon, we don't want to drive gas anymore. Everybody needs to buy an EV. The news media changes with the wind sometimes.

High interest rates have definitely made it more costly to borrow. And also Rivian knew that these vehicles were not mainstream high volume. They are expensive vehicles and so the pool of buyers is naturally going to be smaller. The lack of increasing production is most likely going to be due to the changes that they're making in the spring where they're shutting down assembly and I would imagine it's going to take them some time to ramp back up from that.

I have faith that Rivian is going to be just fine and what we're seeing now is temporary. I want to see where we are in June.

As for the stock, that's a long play. I don't even want to think about the price of the stock until 2026 2027 time frame.

My nephew is a hedge fund guy in Chicago, and last year bought a lot of Rivian stock personally at 14.00.
He said buying their stock is a no brainer and a ten year timeline.

 

[R1TS]

Why are you assuming that because they are losing money for every vehicle they sell that will be the case going forward. Tesla was in the same boat for many years and they eventually got to making a profit. It's going to take time with a startup.

I wouldn’t necessarily call Rivian a startup. The company was incorporated back in 2009.

 

[emoore]

I wouldn’t necessarily call Rivian a startup. The company was incorporated back in 2009.

I would since they didn't start delivering a product until late 2021.

 

[mini2nut]

It appears that Rivian is circling the drain. If the R2 is not a bonafide home run it may be the end of Rivian. it will interesting to watch their finances for the next 6-7 quarters.

 

[vandy1981]

One of the negatives of EVs is that they will NEVER make as much money for the manufacturer when it comes to the service side the way that it does for ICE manufacturers.

Is this really relevant to their bottom line? How much do ICE manufacturers actually make on service under the current dealership model? I suppose they make some money on parts but I think of the service revenue benefitting dealers more than the manufacturer?

 

[Biturbowned]

Looks like I’ll be working a few more years before retirement…

 

[PBRAZ]

Rivian doesn’t have Saudi money.

They sure do, as does Lucid.

https://www.bloomberg.com/news/arti...indian-two-wheeled-evs?embedded-checkout=true

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