Rivian Stock Really Costs 19 Cents. Investors Shouldn’t Forget Cash.

[Tahoe Man]

Buy when others capitulate.

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[DuoRivians]

The cash will be gone in 2 years, so don't include it in enterprise value.

Enterprise value always excludes cash.

 

[the long way downunder]

I didn't say he needs to step aside completely, he is an engineer, he should stick to design it.
The list of bad decisions from price hike and rescind the price hike costed rivian billions.
The latest one with trying to end Amazon deal. What is he thinking???

Seems to be the case that whoever is running Rivian isn't succeeding. Hard to argue they're doing well.

RJ is said to be a bright guy with the right skills and connections.

Whoever is COO, whoever is marketing communications, they're not succeeding.

It's not really subject to opinion, it's just the matter of the fact that Rivian has not made good progress since problems early in 2020. Rivian's communication with customers and Wall Street is marked by repeated mistakes.

Separately, who knows what's going on with the EDV deal. It's not what is visible to the public. If Rivian can build more EDVs than Amazon wants to put into operation, that's a problem. Every EDV should be paying for itself and the sooner it can be put into operation, the sooner it starts saving money for Amazon.

Amazon is buying electric vehicles from other manufacturers, too.

Something is wrong with the Rivian EDV capabilities at a cost-benefit level.

 

[LL75]

[QUOTE="

Separately, who knows what's going on with the EDV deal. It's not what is visible to the public. If Rivian can build more EDVs than Amazon wants to put into operation, that's a problem. Every EDV should be paying for itself and the sooner it can be put into operation, the sooner it starts saving money for Amazon.

Amazon is buying electric vehicles from other manufacturers, too.

Something is wrong with the Rivian EDV capabilities at a cost-benefit level.
[/QUOTE]

Exactly, to further damage the Rivn stock, this deal should have been discuss behind the scene. The media 's spin will say "Amazon ends deal wiith Rivian !! ---- > stock dipping.
"customers cancelled reservations due to price hike"--> stock dipping !
These are few examples of Rivian 's leadership messing up their stock value !

 

[Dark-Fx]

Amazon is buying electric vehicles from other manufacturers, too.

You're not wrong, but they are buying different kinds of EVs also. Anything from electric scooters to electric rickshaws to class 8 trucks. It really just depends on where they need to use them. As big as Amazon is, it would be absolutely stupid of them to put all of their eggs into one basket.

If Rivian can build more EDVs than Amazon wants to put into operation, that's a problem. Every EDV should be paying for itself and the sooner it can be put into operation, the sooner it starts saving money for Amazon.

Care to address the news from last September that Amazon was slowing down their expansion plans and closing distribution centers? They have more vehicles than they need right now and selling them before they are well into being worn out means they are going to lose money on them.

 

[zefram47]

That's what I'm looking to do. But not yet. There is so much volitility that I expect it to drop further. We've already hit another 52wk low today.

I have 300 shares at $48, so i can really help my average at some point.

I swore I wasn't going to buy any more Rivian, but at these prices I'm probably going to purchase another 100 or so just to get my average $/share down too.

I'm still irritated I started buying in at the $100 post-IPO price instead of waiting for things to settle. But I've kinda been buying a little here and there the whole way down and have my average down to $32. As a result I'm way more invested in Rivian than I wanted to be, so I kinda hope we do see things turn around at some point. The daily stock hits every time any article comes out about the company, good or bad, is getting annoying. Maybe we'll all be lucky and they'll pull a Tesla in a couple years.

 

[KootenayEV]

It makes sense if you forget about the cash, and value them based on their chances of becoming either profitable manufacturing companies, or being bought out.

Forget about the cash. It has already been budgeted to be spent, not distributed to shareholders. If Rivian had that much cash and were already fully ramped up on R1 and R2 manufacturing, it would be a different story. Then the cash would matter, because Rivian could use it to pay dividends out to shareholders, or use it to do a stock buyback.

I like the fact that Rivian has cash - it means they can fund most of R2 manufacturing without having to go back to the markets too much (hopefully). If they can make that step, R2 should get them being profitable most quarters, similar to how the Model 3 program did for Tesla (but remember how many cash raises Tesla made to get the 3 finally rolling?)

Lucid (and other EV startups) on the other hand may need to keep going to the market, diluting existing shareholders.

I'm invested in both, but wish I had more $ to double-down on RIVN (though the way markets are behaving this week, I'd probably wait until next week to see what shakes out first).

 

[Deleted member 11292]

[QUOTE="
Exactly, to further damage the Rivn stock, this deal should have been discuss behind the scene. The media 's spin will say "Amazon ends deal wiith Rivian !! ---- > stock dipping.
"customers cancelled reservations due to price hike"--> stock dipping !
These are few examples of Rivian 's leadership messing up their stock value !

Your list of missteps seems a lot less impressive than your passion for repeating them.

What I see from my couch is a guy who started a car company out of nowhere and designed/built a fantastic product that's drawing acclaim from all over the interwebs, who unfortunately ran into a pandemic and the subsequent supply train restraints, and is now dealing with collapsing world finance, being asked to step aside by some random Monday-morning quarterback with internet access.

Your shorts are showing.

 

[LL75]

Your list of missteps seems a lot less impressive than your passion for repeating them.

What I see from my couch is a guy who started a car company out of nowhere and designed/built a fantastic product that's drawing acclaim from all over the interwebs, who unfortunately ran into a pandemic and the subsequent supply train restraints, and is now dealing with collapsing world finance, being asked to step aside by some random Monday-morning quarterback with internet access.

Your shorts are showing.

The two things I listed could definitely be avoid. It has nothing to do with supplies problems. As much as I love rivian cars, it doesn't mean I can't criticize the CEO for doing a pissed poor job for their investors. As long as anyone owned a rivian share, they can voice their opinion.!!!

 

[Deleted member 11292]

The two things I listed could definitely be avoid. It has nothing to do with supplies problems. As much as I love rivian cars, it doesn't mean I can't criticize the CEO for doing a pissed poor job for their investors. As long as anyone owned a rivian share, they can voice their opinion.!!!

You can criticize all you want, that's your right. But when Rivian hiked the prices, I canceled my order. And then they restored the original pricing and didn't even re-charge me for my deposit they had refunded. Classy move and the right thing to do.

And the slant you keep putting on their current negotiations with Amazon isn't matching the reporting, the common sense of Amazon's current situation, or what either company is saying about it. So your interpretation is you basically saying they're lying and you know better because you own stock and took a bath for buying into crazy hype.

The stock market does what it does. Hell a Bitcoin is worth $24,000 and nobody even knows what the f*ck it is.

 

[LL75]

You can criticize all you want, that's your right. But when Rivian hiked the prices, I canceled my order. And then they restored the original pricing and didn't even re-charge me for my deposit they had refunded. Classy move and the right thing to do.

And the slant you keep putting on their current negotiations with Amazon isn't matching the reporting, the common sense of Amazon's current situation, or what either company is saying about it. So your interpretation is you basically saying they're lying and you know better because you own stock and took a bath for buying into crazy hype.

The stock market does what it does. Hell a Bitcoin is worth $24,000 and nobody even knows what the f*ck it is.

He should not do the price hike in the first place. They lost billions because of it.

 

[Deleted member 11292]

He should not do the price hike in the first place. They lost billions because of it.

...says random guy with internet access...

 

[LL75]

...says random guy with internet access...

Just saying like it is. You don't have to agree.

 

[DuoRivians]

He should not do the price hike in the first place. They lost billions because of it.

IMO, they should have raised prices and left it there, even resetting pre-hike holders. It would have been a one-time hit. And Rivian would still be selling those cars. Plenty of post hike orders coming through today.

And a lot fewer flippers on carsandbid

 

[LL75]

IMO, they should have raised prices and left it there, even resetting pre-hike holders. It would have been a one-time hit. And Rivian would still be selling those cars. Plenty of post hike orders coming through today.

And a lot fewer flippers on carsandbid

They could have do price hike for any future orders and it would be fine imo since their cars are under valued at the original price point.

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