Is Rivian getting desperate?

[Trandall]

I think, in the best case, Rivian has been and will be in Panic / startup mode for 4-5 more years.

If the opposite of "panic/start-up mode" is whatever Ford, GM, Stellantis are doing then I hope Rivian stays in "panic/start-up" mode forever.

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[mkg3]

Can you give me The Office version of what you mean by residuals being high in the leasing context (ref: Oscar explaining the meaning of a budget surplus to Michael using lemonaid stand analogy)

When you lease a vehicle, you're effectively financing the depreciation of the vehicle over the term of the lease.

So if you add the total lease amount and the residual value of the vehicle after x number of months, it should add up to the purchase price of the vehicle. The amount financed, has an interest charge making up the monthly payment.

For businesses, it makes sense to lease because the monthly payment is fully expensed; whereas, if purchased, it can only depreciate based on the specified schedule set by the IRS.

The original comment implied that the resale value of R1 will be relatively high, because if it is not, then the bank would not take a loss between the leased amount and the lower than expected residual value.

 

[Whale Blubber]

Thank you!! Makes sense!

 

[sambo]

I was looking at Leasing, does anyone know what the payoff will be after 3 years, if you buy a ~~$90,000 R1S before the $7500 deduction?

 

[R1Tom]

Latest shareholder letter indicates targets for '24 rely on improvement in order rate driven by planned go-to-market strategies.

 

[djsider2]

I was looking at Leasing, does anyone know what the payoff will be after 3 years, if you buy a ~~$90,000 R1S before the $7500 deduction?

Latest reports seem to indicate the interest rates might be comparable to purchasing now, especially with the factored in capital cost reduction.

If you're looking at buying it out completely, you have to weight it against how much you could be earning by investing that money in the market/savings/etc against the total buyout of the vehicle

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