Cloaked Audis, covert CEO meeting: how VW's $5 billion Rivian bet transpired (Must Read Article!)

[Hereforthesnacks]

If you had done your own research you would have find out that Rivian is number one in consumer satisfaction from the Consumer Reports. If you're afraid of owning any Rivian vehicles because of the postings from a few unsatisfied owners on the forum and still buy Rivian stocks at those prices then you're a lousy Rivian investor - you're just doing yourself a disservice.


2024 Consumer Reports Satisfaction Scores By Brand

Rank	Brand	Satisfaction Score (1-5 scale)	Owners that would buy again
1	Rivian	5	86%
2	Mini	4	77%
3	BMW	4	76%
4	Porsche	4	76%
5	Tesla	4	74%
6	Genesis	4	73%
7	Lexus	4	73%
8	Subaru	3	70%
9	Ram	3	69%
10	Honda	3	69%
11	Chevrolet	3	69%
12	Toyota	3	69%
13	Hyundai	3	68%
14	Acura	3	68%
15	Ford	3	67%
16	GMC	3	67%
17	Mazda	3	66%
18	Volvo	3	66%
19	Lincoln	3	65%
20	Buick	3	64%
21	Kia	3	63%
22	Cadillac	3	61%
23	Chrysler	2	60%
24	Mercedes-Benz	2	59%
25	Audi	2	59%
26	Jeep	2	58%
27	Nissan	2	55%
28	Volkswagen	2	51%
29	Infiniti	1	42%

Cox Automotive, the parent company of Kelley Blue Book and Autotrader, is a minority investor in Rivian.

Consumer Reports Owners satisfaction Results

Well, I’ve done ok investing

The most recent data is good, I agree. But look at the last few years. You invest for the future, which is why my money is there. I am hoping the brand can continue an upward trajectory. That’s how you can maybe make some $$$

In my experience, folks who lash out and call others “lousy” at something are projecting. Just my 2 cents.

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[windblowlc]

Well, I’ve done ok investing

The most recent data is good, I agree. But look at the last few years. You invest for the future, which is why my money is there. I am hoping the brand can continue an upward trajectory. That’s how you can maybe make some $$$

In my experience, folks who lash out and call others “lousy” at something are projecting. Just my 2 cents.

I'm not saying that you're a lousy investor, just a "lousy Rivian investor" .

 

[Hereforthesnacks]

I'm not saying that you're a lousy investor, just a "lousy Rivian investor" .

lol. Ok +1 for the lawyer-like distinction. But I still think it’s ok to invest in a company for the future prospects, even if you are not fully in on the current offerings.

That being said, I joined the forum because I’m considering an R1S. Just a little hesitant….

 

[windblowlc]

lol. Ok +1 for the lawyer-like distinction. But I still think it’s ok to invest in a company for the future prospects, even if you are not fully in on the current offerings.

That being said, I joined the forum because I’m considering an R1S. Just a little hesitant….

You're really missing out on owning a terrific EV regardless of whether you own their stocks or not! After owning my R1T for near two years, I think it's good enough for me to upgrade to the Gen 2 Quad. I would buy right now if Rivian would tell me my reservation is ready to be built. 2025 is too long to wait.

 

[savethemanual]

I think he had a good vision. And his product can be great. But he’s followed the classic missteps of founder CEOs. Slow ramp up. Committing $$ to facilities at the wrong time and then bailing. Trouble scaling up when the right time to capture first time buyers was 2021-2024 (R2 should have been unveiled a year ago).

And silly stuff like insisting in house software is better than allowing parallel CarPlay/AA when lack of CP/AA is pain point. It’s just a $$ play.

Rivian has the early adopter $$. Now they need to get the next wave. RJ is too close to the brand so it clouds the growth story. It’s why the market can’t get behind him. Need someone to come in, without founder emotion, and get things in line. Question is: does Rivian want to stay a niche brand or grow?

I think Musk is a jerk. Not a good person. But he was brought in to make the decisions the Tesla founders couldn’t make. Need the same here.

Just my 2 cents.

Well, I give RJ and team credit for what they accomplished during the worst time in history to launch new product and establish an automotive company....during a global pandemic!

 

[docwhiz]

RJ owns approx. 3.5 million shares, he sold like 2 percent, ha! And, he could of waited till the stock popped with this announcement as he knew it was coming. Yes, we have no idea why he sold but lets put it in more context.

He could have sold before the announcement to avoid accusations of profiting from insider trading.
I know it's rare to see ethical behavior but it was the right thing to do.

 

[docwhiz]

If you had done your own research you would have find out that Rivian is number one in consumer satisfaction from the Consumer Reports. If you're afraid of owning any Rivian vehicles because of the postings from a few unsatisfied owners on the forum and still buy Rivian stocks at those prices then you're a lousy Rivian investor - you're just doing yourself a disservice.


2024 Consumer Reports Satisfaction Scores By Brand

Rank	Brand	Satisfaction Score (1-5 scale)	Owners that would buy again
1	Rivian	5	86%
2	Mini	4	77%
3	BMW	4	76%
4	Porsche	4	76%
5	Tesla	4	74%
6	Genesis	4	73%
7	Lexus	4	73%
8	Subaru	3	70%
9	Ram	3	69%
10	Honda	3	69%
11	Chevrolet	3	69%
12	Toyota	3	69%
13	Hyundai	3	68%
14	Acura	3	68%
15	Ford	3	67%
16	GMC	3	67%
17	Mazda	3	66%
18	Volvo	3	66%
19	Lincoln	3	65%
20	Buick	3	64%
21	Kia	3	63%
22	Cadillac	3	61%
23	Chrysler	2	60%
24	Mercedes-Benz	2	59%
25	Audi	2	59%
26	Jeep	2	58%
27	Nissan	2	55%
28	Volkswagen	2	51%
29	Infiniti	1	42%

Cox Automotive, the parent company of Kelley Blue Book and Autotrader, is a minority investor in Rivian.

Consumer Reports Owners satisfaction Results

Good to see actual data and not just random anecdotal stuff found on the internet

 

[crashmtb]

You’re missing what I said. People here are driving it and saying “this is a cool car/truck, but it’s buggy and I’m nervous about keeping it beyond warranty.” Heck, people on here are considering doing whatever they can to stay under warranty.

That, plus competition, is why the stock is down. Your false connection is just trying to make a counterpoint to something I didn’t say.

people say the same thing about...any german car for example.

My point is stock prices do. not. matter. insofar as a product's viability goes.

 

[zipzag]

Well, I give RJ and team credit for what they accomplished during the worst time in history to launch new product and establish an automotive company....during a global pandemic!

One underappreciated choice Rivian we now know made was to put part of the IPO winfall into Gen 2.

Rivian makes great choices on the big stuff. RJ and all the senior leadership deserves credit.

Rivian clearly made some bad choices on the cost and complexity of Gen 1. But the IPO allowed them the resources to improve substantially and not just incrementally. RJ is Rivian's most valuable asset. It's laughable to suggest that its time for Rivian to move on from the founders.

 

[Hereforthesnacks]

people say the same thing about...any german car for example.

My point is stock prices do. not. matter. insofar as a product's viability goes.

Yes and no. If the stock price stays low enough, rivian could be acquired or cease to exist. The former is more likely. If acquired, the product would likely change away from the rivian vision. Thus, the product viability is quite related to stock price when the company is this cheap.

 

[Ralph]

Yes and no. If the stock price stays low enough, rivian could be acquired or cease to exist. The former is more likely. If acquired, the product would likely change away from the rivian vision. Thus, the product viability is quite related to stock price when the company is this cheap.

Note that RJ owns a controlling amount of the voting stock. The company can't be acquired without him voting to do so. So hostile acquisition is not a risk. IMO the VW investment in the joint venture for software and zone architecture virtually assures their continued viability without sacrificing any loss of control of the business.

 

[Ralph]

One underappreciated choice Rivian we now know made was to put part of the IPO winfall into Gen 2.

Rivian makes great choices on the big stuff. RJ and all the senior leadership deserves credit.

Rivian clearly made some bad choices on the cost and complexity of Gen 1. But the IPO allowed them the resources to improve substantially and not just incrementally. RJ is Rivian's most valuable asset. It's laughable to suggest that its time for Rivian to move on from the founders.

There have been other comments re: "the bad choices on the cost and complexity of Gen 1 vehicles."

I'd offer that it is *possible* that they knew that they didn't need to make a door with however many screws Munro complained about. Or that they could make a better one piece cross member, or any number of other "less complex" and better components.

But *perhaps* the company couldn't either afford or perhaps get delivered and installed in time the robots needed to do the job in a more economical fashion. All in the Covid world and with great pressure to actually deliver a vehicle relatively on time so as to begin generating revenue.

 

[Hereforthesnacks]

Note that RJ owns a controlling amount of the voting stock. The company can't be acquired without him voting to do so. So hostile acquisition is not a risk. IMO the VW investment in the joint venture for software and zone architecture virtually assures their continued viability without sacrificing any loss of control of the business.

Is that right? He has almost no Class A. Maybe he has a ton of Class B which has more voting power?

 

[zipzag]

Note that RJ owns a controlling amount of the voting stock. The company can't be acquired without him voting to do so. So hostile acquisition is not a risk. IMO the VW investment in the joint venture for software and zone architecture virtually assures their continued viability without sacrificing any loss of control of the business.

I agree. VW had to answer the question "What happens to our investment if Rivian runs out of cash?". The probable answer is that VW is just fine at buying Rivian at $2. For shareholders that sucks, but for owners it is security.

I wonder if the Scout will have the architecture from the joint venture. A billion dollars is a lot of money even for VW. It seems to me that VW would have specific plans for a return on that investment.

 

[savethemanual]

One underappreciated choice Rivian we now know made was to put part of the IPO winfall into Gen 2.

Rivian makes great choices on the big stuff. RJ and all the senior leadership deserves credit.

Rivian clearly made some bad choices on the cost and complexity of Gen 1. But the IPO allowed them the resources to improve substantially and not just incrementally. RJ is Rivian's most valuable asset. It's laughable to suggest that its time for Rivian to move on from the founders.

Agree.

Also, so many of the updates to R1 were driven by development of R2/3...

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