Why stock getting hammered last few days?

[Golfer04]

Not going to repeat all the excellent points in this thread. IMO, Rivian will be interesting to watch in Georgia. They really need to limit capex spending NOW. If R2 sales don't ramp quickly in 2027 they will need a buyer. Preserving cash gives them options.

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[Cal]

As an old tesla investor (cost basis $125) I’d like to add my two cents. I invested in Tesla after we bought our first MS in 2013. It was so good that I thought there is no way these guys can go out of business. Their product is so good someone will just buy them. Went thru some pretty serious ups and downs but at the end of the day the investment worked great. That was before I realized Musk was a blatant racist and bigot.

I believe Rivian is the same way. They have too many good things that any of the other companies would kill for. Just have to be patient and hold on for the ride. It’s not so bad long as you have a long term time horizon.

I do plan on selling the remaining tesla shares and reinvest in rivian hopefully in the next couple of months.

 

[UnsungZero_OldTimeAdMan]

Why is the stock going up now? (Not that I am complaining - except should have bought some more at $12)

- June 9th delivery approaching
- electrek report of impressive efficiency

Plus… high gasoline prices due to a war of choice with no exit plan. Plus, policy change that motivated nearly all automakers operating in the US to pull back or cancel previous EV plans, which means lack of alternatives and potentially more customers for Rivian (but the street and journalists are ignoring the fact R2 production will be limited until 2028, when GA plant become operational).

 

[mdpa]

As an old tesla investor (cost basis $125) I’d like to add my two cents. I invested in Tesla after we bought our first MS in 2013. It was so good that I thought there is no way these guys can go out of business. Their product is so good someone will just buy them. Went thru some pretty serious ups and downs but at the end of the day the investment worked great. That was before I realized Musk was a blatant racist and bigot.

I believe Rivian is the same way. They have too many good things that any of the other companies would kill for. Just have to be patient and hold on for the ride. It’s not so bad long as you have a long term time horizon.

I do plan on selling the remaining tesla shares and reinvest in rivian hopefully in the next couple of months.

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.

 

[Dark-Fx]

Musk isn't a racist or a bigot.

Yes he is. He has always been one. Mask just came off further and further as time has gone on. Don't know why so many Elon apologists like you exist. The "Pedo guy" incident should have convinced everyone.

You either actually care about these things, or you don't. Being okay with Elon means you don't.

 

[mdpa]

Yes he is. He has always been one. Mask just came off further and further as time has gone on. Don't know why so many Elon apologists like you exist. The "Pedo guy" incident should have convinced everyone.

You either actually care about these things, or you don't. Being okay with Elon means you don't.

Do you understand what you are writing? He is a racist and bigot, because he is a pedo….??? You are a clown because you are not a balloon. Not sure I can compete in this argument.

 

[mkhuffman]

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.

I am with you and please don't paint everyone in the forum with the same brush. There are some reasonable, rational people here.

I am a huge Rivian fan, and also a huge Tesla fan. Rivian just fits my use case better.

 

[Weekend at Gary’s]

Shares were owned in taxable accounts. Loss was realized in taxable account and gives credit. New purchase is in Roth non-taxable, so any "growth" and profit/recovery won't be taxed when sold.

I’m not an account or any sorta professional …but I almost got tangled up in a similar (peculiar to me) way so I spent half a day reading the rules. also apologize for being off topic… maybe saves someone from trouble in the future.

The wash rule is not concerned with the tax structure of the replacement account. It is concerned with whether the taxpayer acquired substantially identical shares within a 30 day window. That window is forwards or backwards (in my peculiar situation). The event is overlooked by investors because brokerages don’t capture it across accounts of different tax types, the way they would if both transactions were in the same brokerage account. They (IRS) even state a spouses account (beneficiaries accounts) will be considered a replacement account for purposes of wash-sale rules. Reference:
Rev. Raul. 2008-5 - Loss from wash sales of stock or securities.

 

[SANZC02]

Hope people took advantage of the summer sale.

Picked stock up on 5/20, sold in a trailing stop loss on 6/5, 28% return in 16 days.

 

[Riviot]

I’m not an account or any sorta professional …but I almost got tangled up in a similar (peculiar to me) way so I spent half a day reading the rules. also apologize for being off topic… maybe saves someone from trouble in the future.

The wash rule is not concerned with the tax structure of the replacement account. It is concerned with whether the taxpayer acquired substantially identical shares within a 30 day window. That window is forwards or backwards (in my peculiar situation). The event is overlooked by investors because brokerages don’t capture it across accounts of different tax types, the way they would if both transactions were in the same brokerage account. They (IRS) even state a spouses account (beneficiaries accounts) will be considered a replacement account for purposes of wash-sale rules. Reference:
Rev. Raul. 2008-5 - Loss from wash sales of stock or securities.

 

[R2D2TOO]

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.

EVs are the future of personal transportation, and the EV market will continue to grow.

Rivian has devloped subtantial expertise and are defining what software defined vehicle platforms look like going forward. RJ is singulalry focused on that and on Rivian's future. I don't see any other car company as well positioned as Rivian is right now. The R2 is critical, but they seem to be executing very well, and dealing with the inevitable setbacks smoothly.

Of course there is risk. They are still a new company.

Legacy auto manufacturers like BMW and GM are already behind, and will struggle to maintain their dealer business model. Dealers depend on services, most of which are not needed in an EV. VW group is investing billions in Rivian software. That is quite significant, in my view.

Tesla sells one model of EV now, and is incresasingly distracted by robots, space exploration, and power generation and storage. Any of these are good businesses, but I don't think they can juggle all those and be successful.

 

[captainjp]

Do you understand what you are writing? He is a racist and bigot, because he is a pedo….??? You are a clown because you are not a balloon. Not sure I can compete in this argument.

You’re commenting on something you obviously know nothing about. Google the Musk/Pedo guy thing and get back to us…

 

[UnsungZero_OldTimeAdMan]

Legacy auto manufacturers like BMW and GM are already behind

These two are not as behind as most of them. And BMW might be a bit ahead of GM; evident in new electric 3 and X3. GM, I think, has it in their back pocket. They're just retracting production plans due to political winds and that they can make more profit maintaining status quo of gas and gas-electric hybrids.

 

[mkhuffman]

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.

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.

 

[savethemanual]

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.

Used EV 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 !!

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