Conspiracy to sink Rivian? Wall Street Journal article

[tiltedandsaltyaf]

no, that's just part 1

They have roughly 9-10B cash on hand. They burn between 1-1.5B per quarter. Giving us a rough, 2 year timeline until they run out of money at existing burn rates.

If one is to look at the business, I fully anticipate them increasing their cash burn as they build a brand new Georgia factory during these next 2 years. This means that right around when the 1st R2 rolls off the line, they'll be close to $0.00; meaning that they'll tap their lines of credit or dilute

Yikes. looks like part 2 just hit, 1.5B offering.

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[NineElectrics]

Yikes. looks like part 2 just hit, 1.5B offering.

They could have raised more with their first offering just six short months ago. Interest rates are up 35% since then. That’s a lot of unnecessary compounding. Galaxy brains are running this company.

In other news, just have found a conspiracy to manipulate Rivian stock—it’s from all of the longs cheerleading in this forum, in naked display of selfish interest. At least it’s sub conscious.

 

[tiltedandsaltyaf]

They could have raised more with their first offering just six short months ago. Interest rates are up 35% since then. That’s a lot of unnecessary compounding. Galaxy brains are running this company.

In other news, just have found a conspiracy to manipulate Rivian stock—it’s from all of the longs cheerleading in this forum, in naked display of selfish interest. At least it’s self conscious.

Basically, expect all good news to be followed by dilution since they'll run out of money before R2 hits full stride. I fully expect this to happen 2-4 more times in the next 2 years for about the same or more money each time. If they stick to what seems to be the twice a year cadence, it'll cut their annual burn in half, meaning R2 production hits with around 4B cash in hand which isn't an uncomfortable place to be when your money printer comes online. but any delays in getting that factory up is going to be problems

 

[downranger12]

It was definitely a hit piece. The writer misleads the reader into the view that the losses were unplanned or unexpected.

The comments were equally uninformative.
My favorites were those deciding how other people would like to spend how much of their own money.
Another that I have seen before is to suggest that Rivian lower their price by 20K for a vehicle that they are currently under water on.
Genius idea.
Another commentator predicted the batteries would fail at the same time as the Rivian company, resulting in buyers remorse from thier point of view. Debbie Downer they.
I and many others have lost that amount of money more than once. You can usually make more money back, and gain a life lesson.
I witnessed a couple of guys lose that much in a casino rarher quickly. I Nnoticed that they were definitelty not as happy as I am driving my safe, comfortable, capable, roomy, powerful, efficient and beautifully exclusive R1t.
Mine has been well worth it's cost.
In addition, the mobile, Chicago and Minneapolis service experiences have all been fun and proactively focused to produce exceptional results.

 

[Arvada Mike]

I was surprised the stock went down the same day as Rivian published strong Q3 production and delivery numbers.

Until I saw this article that went out yesterday:

https://www.wsj.com/business/autos/rivian-ev-truck-electric-vehicle-8e8dc124

Any thoughts?

Good time to buy more Rivian stock.

 

[darren1f]

It's a Murdock owned news outlet. Murdock owns Fox news , WSJ , etc. Enough said.

They also include very reputable news publications like Barrons and Marketwatch. In all fairness, WSJ is NOT Fox News Entertainment or Fox Business. It may be controlled by the same family, but Fox isn’t even within the same company as their legitimate financial publications. That said, there is a ton of investment in legacy automakers, oil, and suppliers. So there will definitely be an anti-ev bias until they can start to deliver shareholder profits.

 

[CrazyOne]

They also include very reputable news publications like Barrons and Marketwatch. In all fairness, WSJ is NOT Fox News Entertainment or Fox Business. It may be controlled by the same family, but Fox isn’t even within the same company as their legitimate financial publications. That said, there is a ton of investment in legacy automakers, oil, and suppliers. So there will definitely be an anti-ev bias until they can start to deliver shareholder profits.

Good, now I can avoid those two too. MW is garbage anyway. WSJ used to be good till a few years back. If there were doubts on the association https://www.wsj.com/articles/domini...tion-case-rupert-murdoch-john-poulos-bf605b16

 

[darren1f]

Good, now I can avoid those two too. MW is garbage anyway. WSJ used to be good till a few years back. If there were doubts on the association https://www.wsj.com/articles/domini...tion-case-rupert-murdoch-john-poulos-bf605b16

No one is suggesting that Fox News isn’t trash. It’s established as an entertainment business, not a real news business. You are posting a link to the opinion section. That’s always been right leaning. Even before Murdoch.

 

[dleewla]

this guy definitely has an agenda. i think Rivian is doing fine. have they had missteps? of course but they are tracking to be successful. and they are at a far better pace than Tesla was at this same juncture of vehicle production/delivery/quality. profits will come, i have no doubt.

 

[NineElectrics]

• WSJ publishes article claiming Rivian spends a lot of money.
• Rivian user community spins conspiracy theories and hates on WSJ.
• The next day, Rivian announces plans to raise another $1.5B, causing the stock to nosedive.

To me, the timing of this article was spot on, appearing just before the bond raise caused the stock to tank (and proving the article’s thesis). Wow. That’s Nostradamus level accuracy. I'm now seriously considering a WSJ subscription.

 

[izgoy]

I was surprised the stock went down the same day as Rivian published strong Q3 production and delivery numbers.

Until I saw this article that went out yesterday:

https://www.wsj.com/business/autos/rivian-ev-truck-electric-vehicle-8e8dc124

Any thoughts?

My thought is that you work for WSJ and try to sell subscription.

 

[izgoy]

I actually view the article as a positive as I've read it was rumored the early production R1Ts cost Rivian roughly 150K to build loosing approximately 50% when sold at early bird pricing. Now only loosing $33,000 is moving in the right direction and as production continues to increase with constant tweaks to the manufacturing process the costs will continue to come down. I'm sure Rivian as with all start ups had projected losses in their business plan although as mentioned previously the pandemic threw the original projected numbers out the window. That being said this is an incredible piece of engineering and technology, and no matter if you're trying to save the planet or like me just want the current state of the art vehicle Rivian is hard to beat.

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