Is this stock doomed?

[CrazyOne]

not to mention the idiots who continue to roll negative equity from car loan to car loan because they buy more than they can afford. The Count's unpopular opinion is you should never carry a car note longer than a 36 month term... even at zero % (because even at 0% you may be upside-down for a while).

As far as RIVN goes, The Count continues to hold as his tax-loss harvesting is pretty much over for 2023.

I don't have auto loan now, but would definitely take it at 0%. Also kept the previous loan at 2% for the full term as I was paying more interest for mortgage.

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[DuoRivians]

Today is a crappy day to infer anything. Stocks are a mess today, as technical levels on Nasdaq 100 and S&P 500 are playing havoc on the whole market.

So far, RIVN is trading under average volumes on an otherwise big volume day. So, today is just noise for RIVN

 

[Redline]

Rates and inflation are everything right now.

 

[Hillbilly]

Yeah that is my next investment goal personally, get into a tax managed account. High barrier of entry though. My view on cars is even more restrictive than yours because I think a luxury purchase shouldn't be financed at all.

Partly depends on the luxury item and interest rate. If someone offered me a Rolex at 0% for any term, I'd be crazy not to do that. Just a hypothetical.

 

[Riviot]

Ugh just complaints about trolling. I want to know the answer!

 

[Longreach]

Rivian‘s survival depends entirely and exclusively on the execution of the R2 platform at the right cost point. Even RJ would admit that.

 

[No_moab]

Do you guys really want to invest billions into a company who can't even produce a decent tonneau cover? Really?

 

[SANZC02]

Do you guys really want to invest billions into a company who can't even produce a decent tonneau cover? Really?

I do, really would not know how to use one on my R1S…

 

[UnsungZero_OldTimeAdMan]

Seems like the stock doesn’t want to find a bottom yet. Any idea if EVs beyond tsla are still going to be around in a few years?

Username checks out. Troll.

 

[kylealden]

Seems like the stock doesn’t want to find a bottom yet. Any idea if EVs beyond tsla are still going to be around in a few years?

I forgot to tell y'all I bought last night, you would have seen this coming.

My winning streak continues:

It's a good thing I bought a bunch of shares yesterday right before this news came out because I'm a big smart investor

 

[popoga]

Perhaps we are in the "old fashioned" category here but I agree 100%. If you have to buy a car on a loan, you simply can't afford it. Sorry if that means not having a shiny new Rivian (insert car of choice) today but doing instead something called "saving up"!

A by-product of recent cheap credit and people trying to keep up with the Jones's ... got to be seen in a brand new Range Rover I don't actually own rather than a 2nd hand Rav4 i should be in.

oh and to answer the OP, yes of course, all EVs are doomed. Rivian is doomed. Quick sell your stock, car, everything. Jeez ...

Sanctimonious as heck. Lots of folks have plenty of cash and other liquid-ish assets, but if you can get a loan below your expected rate of return on those (2.5% loan, 5.3% money market?) there's no real reason not to take the loan.

 

[kylealden]

Joking aside, there's a ton of volatility and negative sentiment about the auto industry generally and EVs specifically (lots of press about supposed reduced demand, which really means "slightly less explosive growth than anticipated" in a sector where prices are extra vulnerable to interest rates).

Rivian is getting punished along with that but I wouldn't read into it as meaningful beyond the market trend.

1. Rivian's future is in scale (R2 and reducing costs). We won't know much about their chances for a while, but optimistically it means they won't be competing at scale for price sensitive customers for another two years, and hopefully some of this economic uncertainty will have shaken out by then. In the meantime they have enough capital to hopefully avoid borrowing at exorbitant rates.

2. Rivian's present is with niche, less-price sensitive customers. They don't appear to have a demand problem in the short term and are outcompeting Tesla and other EV players at the high end of the market. Here, their market niche (and Amazon partnership) are a huge asset that lets them maximize the opportunity of their output while they bring up R2. Much better than filling lots with unsold inventory ala Lucid or the legacy manufacturers.

3. I think they should consider raising prices, especially at the top end (e.g. quad motor), unless demand is flattening faster than it appears to be. But we'll see.

 

[kylealden]

Perhaps we are in the "old fashioned" category here but I agree 100%. If you have to buy a car on a loan, you simply can't afford it. Sorry if that means not having a shiny new Rivian (insert car of choice) today but doing instead something called "saving up"!

A by-product of recent cheap credit and people trying to keep up with the Jones's ... got to be seen in a brand new Range Rover I don't actually own rather than a 2nd hand Rav4 i should be in.

oh and to answer the OP, yes of course, all EVs are doomed. Rivian is doomed. Quick sell your stock, car, everything. Jeez ...

This is pretty silly. My R1T is 100% financed because rates were lower than inflation. Instead I put the full purchase price of the car into the market. Do you think I wish I'd paid cash? Absolutely not.

 

[jjswan33]

Sanctimonious as heck. Lots of folks have plenty of cash and other liquid-ish assets, but if you can get a loan below your expected rate of return on those (2.5% loan, 5.3% money market?) there's no real reason not to take the loan.

Yep. If I wanted to take a loss on my Rivian stock today then I could pay off my loan for my R1T but at 2.5% APR I think my odds are still better at a good return on my RIVN.

 

[EmPickle]

Eventually the shorts will get clobbered just like TSLA.

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