Stock price manipulation or just poor planning

[Bilbo]

I am beginning to wonder if Rivian knew they could never deliver at these prices and knowingly priced incorrectly to artificially bloat the IPO price.

Having to change my battery size/range just to keep my place in line a few weeks ago because of production issues but now they are offering an even smaller one but this time it's to keep your price the same but still not lose your slot. Thay doesn't make sense for production speed...only for profit margin. They had to know this back when we had to cave in to keep our slot.

I feel like I was falsely roped in but also strung along just to bloat preorder numbers while Rivan knew all along they could never deliver vehicles at the price we locked in.

I will be watching the March 10th earnings report and see how the dropoff in preorders is handled. I have always been a huge fan and desperately wanted them to succeed but the SEC needs to take a hard look at the planned sales figures and see how realistic the initial sales costs and goals were calculated. Miscalculated or rug pull after initial IPO?

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[Taycanfrank]

Of course they did. Laura Schwab has already told us that.

But will they get in trouble for it? No. The current shortages and inflation are a super convenient shield against any blowback.

 

[Craigins]

it is as simple as this:

they had a target $$ in mind for 2022. They made their adjustments to ramp up production, and missed their targeted ramp up. They then ran the projected production schedule based on the new ramp up and fell short. Thus they adjust the price to meet the $$ point, knowing that even with cancellations they will have enough deliveries to last into 2023.

Not rocket science. Not a Always Sunny conspiracy theory meme.

 

[Taycanfrank]

it is as simple as this:

they had a target $$ in mind for 2022. They made their adjustments to ramp up production, and missed their targeted ramp up. They then ran the projected production schedule based on the new ramp up and fell short. Thus they adjust the price to meet the $$ point, knowing that even with cancellations they will have enough deliveries to last into 2023.

Not rocket science. Not a Always Sunny conspiracy theory meme.

So you're saying they're incompetent?

It's one of the two. We knew they weren't going to hit any of those promises, so how they wouldn't have known is beyond me..

It's not a conspiracy theory. It's typical for IPOs to be artificially inflated, because money. Everyone games the system.

The unusual part is that Rivian could have hedged their bets and kept diehards happy while hammering newer, less invested customers at a relatively meager loss.. instead choosing to hit everyone. That's the odd part.

 

[Dark-Fx]

Next you people are going to argue that by pricing up the IPO twice, they were manipulating the price of their stock.

 

[Gshenderson]

I think there will be a significant revision to production / delivery numbers on 3/10 that will be used to mitigate civil suit exposure. Their defense, in addition to supply chain and materials inflation, will be “we didn’t want to raise prices but had to due to these external forces.” It’s a fairly reasonable excuse, so I think there will be a heavy burden of proof required to show they actually intended this all along and intentionally misled investors. If the stock price falls below $40, then there will definitely be class action civil suits filed.

 

[Craigins]

So you're saying they're incompetent?

It's one of the two. We knew they weren't going to hit any of those promises, so how they wouldn't have known is beyond me..

Most people are incompetent.

Aside from that fact, what did WE know and what promises? In relation to my statement, the only information we have is all preorders (50k) completed by end of 2023. Max production rate for the factory achieved by end of 2023. And I believe all LE delivered in 2022, but no numbers attached to that so that is nebulous.

 

[Bilbo]

it is as simple as this:

they had a target $$ in mind for 2022. They made their adjustments to ramp up production, and missed their targeted ramp up. They then ran the projected production schedule based on the new ramp up and fell short. Thus they adjust the price to meet the $$ point, knowing that even with cancellations they will have enough deliveries to last into 2023.

Not rocket science. Not a Always Sunny conspiracy theory meme.

Conspiracy theory or higher expectations for a company coming out of the gate with a trillion dollar valuation.

Besides that, the mandatory changes forced on us only three weeks ago (battery) does not align with what the company said yesterday. It is either incompetence or simply willing deception. One is a shame. The other is punishable

 

[Bilbo]

Conspiracy theory or higher expectations for a company coming out of the gate with a trillion dollar valuation.

Besides that, the mandatory changes forced on us only three weeks ago (battery) does not align with what the company said yesterday. It is either incompetence or simply willing deception. One is a shame. The other is punishable

Also, what are the chances we will still have a $7,500 tax credit in place by the time mine would hit my driveway. Add that to my $12,000 hike for now

 

[AllInev]

"Stock price manipulation or just poor planning", you ask? Well, don't worry, no need to choose when you can have both!

 

[ironpig]

Of course they knew the trucks were priced too low in the Fall. But the IPO is solid and there will be no fraud investigations. It's over. They raised the prices well after the IPO and have plenty of cover with supply chain, covid, new company etc etc. It's a waste of energy to go down that road.

Public shaming through legitimate news organizations is really the only recourse at this point. And that's not going to change the truck prices, but it might help some early reservations holders keep their initial price. I wouldn't give up on that if I had a 2018 order.

 

[AllInev]

I think there will be a significant revision to production / delivery numbers on 3/10 that will be used to mitigate civil suit exposure. Their defense, in addition to supply chain and materials inflation, will be “we didn’t want to raise prices but had to due to these external forces.” It’s a fairly reasonable excuse, so I think there will be a heavy burden of proof required to show they actually intended this all along and intentionally misled investors. If the stock price falls below $40, then there will definitely be class action civil suits filed.

It will be interesting to see what documents (if any) Laura Schwab has related to Jiten Behl's supposed plan to keep the prices fixed until after the IPO.

If there's documentation that it was Behl's intention to keep prices artificially low until after the IPO (and essentially until they were ready to actually ship to non-employee customers) then I think there's merit for the SEC looking into this. We're talking about one of the biggest IPOs in decades, right?

 

[JerseyGreens]

Can you imagine being an employee with a massive amount of your compensation locked up in stock...

Some of them probably thought they were millionaires not too long ago...

Now they are biting their nails watching the stock price tank and praying the carnage isn't terrible until the lock up period ends...

Will those same employees give a flying F about their daily jobs? Will QC spiral out of control because they feel duped as well? It's about to get worse before it gets any better for Rivian.

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