Rivian Layoff 10% Staff and Lowers Production Forecast for 2024

[emoore]

Going from, say 9% to more than 50% in 6 years (I'm talking about in the U.S.) is going to be tough. I'd say more like impossible. I just don't see it happening. There's too much anti-EV sentiment out there. The only way I see that happening is if the government steps in and forces EV sales by banning ICE sales. That could potentially happen, but not by the end of this decade.

I agree that the concept of EVs are very political right now but the actually buying of EVs don't seem to be:

https://www.cnn.com/2024/02/21/us/electric-vehicles-republican-voters-dg/index.html

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[White Shadow]

I agree that the concept of EVs are very political right now but the actually buying of EVs don't seem to be:

https://www.cnn.com/2024/02/21/us/electric-vehicles-republican-voters-dg/index.html

Well, without trying to get too much into politics, I will say that the next presidential election is obviously going to have a big impact on the direction of the U.S. in terms of EV vs ICE. If Trump manages to avoid getting convicted and somehow wins the election, it's going to be a huge setback for everything EV. If Biden gets re-elected, he's most definitely going to push ahead with his pro-EV agenda.

 

[mkhuffman]

The pessimism expressed by others posting here is reasonable and hard to argue with. But there are positives that matter.

The R2 will be revealed in a couple weeks and nobody knows how it will be received by the public. However, I think it will be a hit.

There is nothing in the market right now that even comes close to a small R1S. The EV9 is a minivan. The Gravity is a station wagon. The R2 will cost substantially less than those and be off road focused. Practically nobody drives off road but everyone wants to know they can. (I am exaggerating a little, of course.) It's going to destroy the competition IMO.

Now will they have enough cash to actually meet the demand?

Certainly it is a high risk investment, but I am going to add to my holdings today. I haven't since I bought at the IPO, which was a huge mistake, but it is time to buy now I think.

Famous last words...

 

[emoore]

Well, without trying to get too much into politics, I will say that the next presidential election is obviously going to have a big impact on the direction of the U.S. in terms of EV vs ICE. If Trump manages to avoid getting convicted and somehow wins the election, it's going to be a huge setback for everything EV. If Biden gets re-elected, he's most definitely going to push ahead with his pro-EV agenda.

100% agree. I do think there is too much momentum for anyone to slow down EV adoption much.

 

[epowermarine]

Just added to my position, I'm in for the long road.

 

[RivianSurvive]

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

Clearly, R.J. implied they would need capital raises to fund R2 when he avoided to give a firm No when asked about the question.

From my experience as a seasoned investor, they will likely do it when the stock pops after a potential gross margin breakeven quarter.

 

[RivianSurvive]

When I see people compared Rivian with the money losing Tesla in before 2020, they made a critical mistake.

Tesla were gross margin positive with model S/X in even during its early years. For example, its GM was 27% in 2010 and 28% for 2014.

In contrast, Rivian’s GM is still deep in the red even after generating similar revenue from selling $70+ vehicles as Tesla did in 2015.

This is quite concerning for a shareholder. But as a Rivian customer, I feel my car is worth the money.

 

[Dark-Fx]

Amazing how any Rivian stock news or a quarterly earnings call brings out the “concerned investors”…

I also find it questionable that @Count Orlok made a reappearance.

 

[COdogman]

I also find it questionable that @Count Orlok made a reappearance.

Yes...that is suspicious timing?

 

[SANZC02]

Just added to my position, I'm in for the long road.

There are a lot of people jumping in. For everyone selling there is a buyer at the discounted rates. Tons of activity, normal volume is 33 million, it is almost 5x that today with over 145 million shares at this point.

 

[Tahoe Man]

Clearly, R.J. implied they would need capital raises to fund R2 when he avoided to give a firm No when asked about the question.

From my experience as a seasoned investor, they will likely do it when the stock pops after a potential gross margin breakeven quarter.

This is why I like Phil, RJ tried to dodge the big question regarding the capital raise but Phil cornered him.

He kept mentioning interest rates are the reason for the slack in sales. The problem is, it's not like interest rates are high, they're essentially at normal levels after years of artificial low levels. If RJ is wishing for 2% rates on the ten year again, it's wishful thinking it will indicates the economy is contracting.

I'm assuming the stock is already taking dilution into account, that's why it's getting hammered again.

 

[LetsgoRIVN]

There are a lot of people jumping in. For everyone selling there is a buyer at the discounted rates. Tons of activity, normal volume is 33 million, it is almost 5x that today with over 145 million shares at this point.

The high volume could also mean big shareholders like Amazon are selling. We will see

 

[SANZC02]

The high volume could also mean big shareholders like Amazon are selling. We will see

You can only offer to sell, you can’t sell without a buyer….

 

[RivianSurvive]

This is why I like Phil, RJ tried to dodge the big question regarding the capital raise but Phil cornered him.

He kept mentioning interest rates are the reason for the slack in sales. The problem is, it's not like interest rates are high, they're essentially at normal levels after years of artificial low levels. If RJ is wishing for 2% rates on the ten year again, it's wishful thinking it will indicates the economy is contracting.

I'm assuming the stock is already taking dilution into account, that's why it's getting hammered again.

Precisely. The big problem is EV adoption has faced a road block after the easy targets are tapped in. That’s why all major EV makers including Tesla has warned about 2024. Meanwhile, GM and Ford didn’t give a bad guideline about their ICE forecast. “High” interest rate hurts both ICE and BEV Because the average selling price of both segments are similar.

 

[LetsgoRIVN]

You can only offer to sell, you can’t sell without a buyer….

I know but it’s really bad if Amazon is unwinding their position!

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