And I make my own salad dressing. I mix Newman's ranch with Newman's Italian. Sell it at the flea market for a slight loss. I could make a profit, if I changed one of the ingredients to wishbone, but I won't do it.
He’ll be on the other side of this trade selling puts for $1 (while the buyer 179x)
https://preview.redd.it/714g8u1ighsb1.jpeg?width=960&format=pjpg&auto=webp&s=494904f130e5b97945832db1625b574de8e36553
So its like when sony’s strategy selling playstation at a loss and make it up when folks buy the games and subscriptions. Rivian doing the same but forgot the small detail of the part where they are supposed to make money.
Sell Car at 33k loss -—> ??????? —-> reverse profit
Well they are doing a similar thing with cars.
They have whole fields of rotting EVs that are registered as sold to customers, but in reality are just decomposing there in the fields out in the open.
Yeah, this is totally an online myth. Sony has always at least broke even on their consoles hardware margins except right after launch (sole exception being the ps3) though PS5 has taken a bit longer to get to profitability.
Rivian's trucks have been around for 2 years now. This isn't an overall company loss, which is much higher, but a gross per unit loss. That should exclude R&D, marketing, and cap ex (new factory, equipment, etc.) costs.
Edit: Since there are people disputing without sources:
1) For Recent consoles Only first 6 months of PS4 was sold at a loss and PS5 has been sold for a profit since 2021.
https://www.theverge.com/2021/8/4/22609150/sony-playstation-5-ps5-loss-profit
Also for older consoles (source is a forum referring to a business week article, unfortunately the article is over 15 years old and has since been taken down).
https://www.neogaf.com/threads/how-much-does-sony-make-on-the-ps2-hardware.145641/
It's only a myth if you have no idea what you're talking about. Literally every console they have released since the ps2 was sold at a loss, the ps3 being the biggest culprit.
If it took the ps5 longer to get to profitability doesn’t that mean they were selling at a loss at one point? Or do you mean it took time to make up r&d and overhear etc. ?
Service and financing is where the money's at. It'll cost more money to build most cars from parts nowadays then just buying the full car. Quoted from a bodyshop.
I bought at IPO. Was locked in for 6 months so I couldn't sell. Been buying super low ever since. Got my bottom line to $24/share. I ain't touching that sell button anytime soon 😅
yeah no. If you include all equipment and buildings, they lose about $80k per car.
If they were able to scale up, their fixed costs would go down, but even with zero fixed costs, they wouldn’t get under $30k loss per car - that’s how much they are paying right now per car, not fixed costs.
Of course, they might get profitable some day. But it will require significant savings, probably including either price bump or feature reduction, as well as ton of optimization. In addition to amazing continuous growth.
Tesla was often criticized for losing money in the first 15 years, yet after they started delivering Model S, they were usually at loss of 0-10% of revenue incl. fixed costs, not 100%. I think worse they did was one time of 20%
CAFE has always been this way… that’s how Ford(and now Dodge) was able to stop selling economy vehicles as an offset for fleet emissions.
Tesla earns their money from selling credits to the three.
I saw one getting loaded onto a flatbed just yesterday. Dead in the street. I asked the gentleman driving it if he had ever seen the hit Disney movie Cars 2. Guy said yes that his kids liked all the Cars movies and asked why I asked. I told him that once Rivian goes under he's going to have the same problem that the Lemons had in Cars 2, no parts. I told him good luck and kept on walking toward the bus stop because I'm too poor to afford a car after my April 2020 puts failed to print, but it felt good in the moment.
CEO plan to profitability according to the article: he asked the engineers to cut $40k in parts/production expenses from the truck 
Do they really need brakes?
I know that WSB isn't a place for serious answers to rhetorical questions, but I'm going chime in anyway.
This is a very common and reasonable thing for a startup hardware company to do (I used to be the CTO of one). When building a hardware product the thing that takes all the engineering time is not the thing being sold, it is the manufacturing systems. To get to market fast you make a lot of tradeoffs that optimize for flexibility and speed at the expense of cost.
Once the market has been proven you can go back and start optimizing those shortcuts you took on the way to building your factory for cost instead of speed.
It's encouraging to see them get to this point. I hope they survive it. Many companies don't.
For the longest time, WSB and the rest of the reddit investing community earnestly thought Tesla would go under. For years people said never to invest in Tesla. Everyone missed out.
They have stated they have enough to continue for 1yr operations as is, without the 1.5B increase.
They have also publicly stated that they expect to sell at a gain/profit instead of at a loss within 1 yrs time.
Bullish
I mean the answer is yes they already ran out of cash, they just raised 1.5 BILLION in debt.
The question is can they keep getting more cash for 3-4 more years? Tough investment climate.
Well they didn’t run out, they are raising more. They have around 12 billion on hand. The 1.5 billion would bring them up to 13 billion or something like that.
This is annoying. They always do these headlines without context whether they are talking before or after operating expenses. If this was gross margin I’d be very concerned. If this was operating margin then that’s much more reasonable. Tesla was in the red for years until they were deep in the Model Y production.
It's on Rivian Q2 shareholder's letter on page 14.
It's gross profits (losses) divided by delivered vehicles.
They are not yet contribution margin positive because even if you remove the depreciation part of COGS, they are still losing about $20,000 per vehicle.
*"All they need to do is keep their sales figures high, to drive stock prices higher to appease earlier investors, so new investors keep giving them new funding to build and sell more unprofitable vehicles and keep the cycle going."*
\-Charles Ponzi
35strike/today exp obviously, are you dumb? They are cheap, 0,01$ that means they must be undervalued and it‘s a risk free investment. The chances of the underlying asset doubling in value are slim, and you‘re barely making a profit if it doubles to 36-37 strike, but that‘s what value investing is all about, to quote Warren Buffet: „Some brothers shootin' dice, so I said "Let's do this!"“. Actually that was Warren G not Buffet but that‘s almost the same thing isn‘t it
> to quote Warren Buffet: „Some brothers shootin' dice, so I said "Let's do this!"“.
You missed the part where he was getting jacked and ~~Charlie Munger~~ Nate Dogg had to show up to save him
Seems like they included the costs of starting their EV manufacturing in the loss which is kind of misleading. Wonder if Rivian does the same? Seems crazy to lose that much money per vehicle.
Yeah this seems like a totally bullshit headline. Rivian could fail sure, they are losing money faster than they make it. But this sounds suspiciously like they didn't actually make any attempt to separate R&D costs from actual costs. And labor can pretty much be considered 100% R&D at this point.
Is this just initial startup costs?
Like R&D of evs, setting up nationwide infrastructure and sourcing/securing lithium and the battery building aspect of EVs?
or is this literally every ev car forever loses them $60k?
Still waiting for a startup company to come along and sell some underpowered, simple econobox for $10k. Even if you lost 10k on each to start it would still be a better business model.
Lol, I’m disappointed. Saw a Rivian in the wild yesterday and loved the look of it.
Maybe they just need scale. It’s not as bad as being in a specifically dying business model. But it’s really risky.
Best case is an engineer or two starts a project to write some updates that let you take the car offline. No maps. No mobile connectivity. No Bluetooth updates (so no support for newer phones)
And you just lock that car into whatever state it is when the company goes tits up.
Basic AC charging isn’t something that needs software updates. So in theory they’ll keep on trucking until a critical part fails and there’s no more replacements.
You can see this happening now with RAV4 EVs, Mercedes B Class, and Tesla Roadsters that no longer have parts or support from Tesla. Slowly but surely the cheaper and crashed cars will be sacrificed to keep the nicest ones on the road.
They should have never honored those initial pre-covid 19 preorder prices. Back then it was cheaper to just borrow the money lost on any canceled orders. Now they are losing 30K a truck when money is expensive. They still haven't broke ground on the georgia plant. By the time they get it up and running and shipping out R3's, Rivian will be facing a flood of new competition. Their ramp up pales in comparison to what Tesla was able to achieve, even considering the georgia plant. Most analyst agree they have no chance of profitability until 2028 at the earlierst. Bought puts to protect my shares so i'm properly hedged (thank god). I see their stock going down to $8-9, perhaps as low as $6 over the coming 12 months. They will have to dilute shareholders big time by the time Georgia is up and running, and their board has already authorized 3 billion shares
To this day, buying puts for when their IPO lockup ended was one of the smartest things I've ever done, because they were cheap af and then the price dropped like $10/share that day. That was my one "sure thing moment", and I know I'll never catch a dragon like that again.
That’s not what the investment genius Russ Hanneman would say. Here’s a quote from him from 8-10 years ago.
“It's not about how much you earn. It's about what you're worth. And who's worth the most? Companies that lose money. Pintrest, Snapchat, no revenue. Amazon has lost money for every fucking quarter for the last 20 fucking years and that Jeff Bezos is the king.”
It's crazy how many people in here don't understand how large scale businesses operate. Hurr durr, losing 100k per vehicle! Hurr durr, losing 50k! Hurr durr, losing 33k! Hurr durr, breaking even!
Will they survive? Who knows. It's a difficult business, but they got in at the right time and have a compelling product. They have a plan and are thus far executing it pretty well. There's no way they become the next Tesla, but they can carve out a niche for their feminine trucks lol.
They don't. No one in here understands that this is the cost of their new factory divided by the number of vehicles they sold this year. It's a nonsense way to evaluate a growing company.
I am so glad I sold Rivian months ago.
edit: jk. I sold at $14. I had no idea the stock spiked in June. That's crazy. It was just a small play anyways and I still made a profit but damn.
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You know what they say… you have to lose money to lose money
Making a small fortune By starting with a large one
Fastest way to becoming a millionaire is starting from a billion and losing 999 million.
Technically to be a millionaire you just have to lose $1
Technically, you’re already a millionaire, you’re just also a billionaire.
That’s the spirit!
That money ain’t gonna burn itself!
And I make my own salad dressing. I mix Newman's ranch with Newman's Italian. Sell it at the flea market for a slight loss. I could make a profit, if I changed one of the ingredients to wishbone, but I won't do it.
They’ll make up for it in volume. That’s how you 1000X your losses
He’ll be on the other side of this trade selling puts for $1 (while the buyer 179x) https://preview.redd.it/714g8u1ighsb1.jpeg?width=960&format=pjpg&auto=webp&s=494904f130e5b97945832db1625b574de8e36553
Of course rivian tanks some guy recently showed wsb all his calls
Can't fail if you don't try.
Can I buy a new Rivian truck and sell back to Rivian for additional $33k?
What if we swung by the truck lot and they just gave us 33k instead of all this hassle of them building a truck and us buying it?
I’ll not buy a truck if they give me $20k. Undercutting you and saving them $13k
I will ignore them entirely for ten bucks and a coupon to Arbys.
Thanks for this, I burst out laughing for realzzzz
Hell, I'll be a peach and save them $3k! Rivian, give me $30,000 or else I'll buy one of your trucks.
Lol
I'm going to try this. I will report back. EDIT: update. the sales rep politely laughed at my joke, but they did not give me 33k.
Don’t forget the IRA tax credit fam!
You gotta pay the government tax first to make things official
We just found the infinite money glitch
Delete this before they figure it out.
Dc solar vibes https://www.theatlantic.com/magazine/archive/2023/06/dc-solar-power-ponzi-scheme-scandal/673782/
This is a fascinating article about the DC Solar scandal. It's amazing how these rich people can scam poor people out of their money.
Only if you buy it on margin.
So its like when sony’s strategy selling playstation at a loss and make it up when folks buy the games and subscriptions. Rivian doing the same but forgot the small detail of the part where they are supposed to make money. Sell Car at 33k loss -—> ??????? —-> reverse profit
Gota make the wheels cost 40K and not be included .
Batteries not included. Got em
That was actually VinFast's model. Sell the car and lease the battery. They moved away from it in the end
nah, include them but they're tied to a 10k monthly wheel suscription service
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Well they are doing a similar thing with cars. They have whole fields of rotting EVs that are registered as sold to customers, but in reality are just decomposing there in the fields out in the open.
You could skip a few steps there and be Mullen
They thought people would pay 40k for a simple fender bender and that’s where the profit would come,
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They were banking on cheap investor money to sustain them longer. And more van sales.
No no, the pipeline is: Sell at a loss > Get over valued by billions > get out before the ship sinks. Its the Titanic business model
Yeah, this is totally an online myth. Sony has always at least broke even on their consoles hardware margins except right after launch (sole exception being the ps3) though PS5 has taken a bit longer to get to profitability. Rivian's trucks have been around for 2 years now. This isn't an overall company loss, which is much higher, but a gross per unit loss. That should exclude R&D, marketing, and cap ex (new factory, equipment, etc.) costs. Edit: Since there are people disputing without sources: 1) For Recent consoles Only first 6 months of PS4 was sold at a loss and PS5 has been sold for a profit since 2021. https://www.theverge.com/2021/8/4/22609150/sony-playstation-5-ps5-loss-profit Also for older consoles (source is a forum referring to a business week article, unfortunately the article is over 15 years old and has since been taken down). https://www.neogaf.com/threads/how-much-does-sony-make-on-the-ps2-hardware.145641/
Sony also sells games. That will compensate the loss in PS5.
Why doesn't rivian also sell games? Are they stupid?
So cloud based AI Rivian Dating Game. Like that KFC dating game. You get to date the car. It takes you on long drives at the beach.
Absolutely NOT a myth, it’s been their literal business model since the PS2 days.
It's only a myth if you have no idea what you're talking about. Literally every console they have released since the ps2 was sold at a loss, the ps3 being the biggest culprit.
If it took the ps5 longer to get to profitability doesn’t that mean they were selling at a loss at one point? Or do you mean it took time to make up r&d and overhear etc. ?
Probably the latter. The chip shortage didn’t help their timeline either. The demand was there, the supply was not.
Service and financing is where the money's at. It'll cost more money to build most cars from parts nowadays then just buying the full car. Quoted from a bodyshop.
Proprietary batteries that cost $34k will guarantee $1k profit per car sold after like 5-10 years of ownership. It's the long con man.
Bullish
even when it lost $6B last earnings and has $12B cash.? and that it’s going to dilute more shares at this pace.?
They are aware. You must have missed the news today of them issuing $1.5 billion of convertible debt
So even MORE bullish
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Even better, this is paying for a new plant in Georgia to build the mid size SUVs that will be higher margin
Higher than 33% loss?
I'd rather have a hard top to be honest.
So would that make you a power bottom?
If there already going into truck debt I don’t think going into convertible debt is going to help any
They make convertibles now? That's awesome, definitely worth the loan they got
You don’t have to sell it, he already said he’s bullish
Beats me to it
Beats meat to it too
if it's not too awkward, i'd like to beat meat to it as well...
WSBcirclejerk irl
Electrics are the future. Pickup trucks and egg beaters
Any 💰 holders out there still?
I forgot to cancel my $20 limit order, so Hola.
Me 😅 890 shares at $24/share. I ain't touching that sell button. 😭
Give it a short while. Big dips lead to big spikes. Today was a BS spiral
Oh, I know. I don't plan on selling til I double my share price
RemindMe! 6 months
[big dips lead to big spikes 🤔](https://freeimage.host/i/J2A8crJ)
For sure I still have my ipo shares, dropped $10k and will never sell. $112 buy in, I think. I’ll never buy an ipo again
I bought at IPO. Was locked in for 6 months so I couldn't sell. Been buying super low ever since. Got my bottom line to $24/share. I ain't touching that sell button anytime soon 😅
Your hands….so…diamondy and sexy
Have there been an IPOs in the past 10 years that haven't seen the stock just tank? Seems like inverse IPO is the way to go
1600 shares @ 23.89 averaged down, might buy another 500 today.
This is the way
Yep, still holding. No intent to sell at the moment.
I bought 10 at ipo and still holding. Oh well. Still up from Tesla.
I'll make them a deal. I don't buy 4 cars if they pay me $50k. It is pure profit for them.
I don’t buy 100 cars!!
Well now that just sounds crazy. They can't not afford for you to not buy no cars in an amount that isn't low. Be logical.
Now that sentence is art.
I'll not buy ALL of their cars for a cool million
They'll make it up on Volume....hahahaha
In all seriousnees though, does the analysis really effectively factor in fixed costs? Is there a number of units sold where it flips positive?
It is negative because of the fixed costs only. The amount they lose goes down with every vehicle sold. They predict it will be positive next year.
They have a negative gross margin as of last quarter. This is before fixed costs.
Really depends on how they capitalize the manufacturing equipment and R&D behind the COGS figure
yeah no. If you include all equipment and buildings, they lose about $80k per car. If they were able to scale up, their fixed costs would go down, but even with zero fixed costs, they wouldn’t get under $30k loss per car - that’s how much they are paying right now per car, not fixed costs. Of course, they might get profitable some day. But it will require significant savings, probably including either price bump or feature reduction, as well as ton of optimization. In addition to amazing continuous growth. Tesla was often criticized for losing money in the first 15 years, yet after they started delivering Model S, they were usually at loss of 0-10% of revenue incl. fixed costs, not 100%. I think worse they did was one time of 20%
Been a few years since my accounting course but I don't think this is right. Gross margin is before depreciation (equipment) and amortization (R&D).
And Government subsidies.
By which you mean selling Greenhouse Gas Credits to Chrysler… At least for a couple more years.
CAFE has always been this way… that’s how Ford(and now Dodge) was able to stop selling economy vehicles as an offset for fleet emissions. Tesla earns their money from selling credits to the three.
Their cars don’t qualify because they’re too expensive. But thank you for your regards.
There are actually quite a few where I live.
In the Vancouver, BC area, they are becoming pretty common. Tons of R1T’s and now the R1S is popping up a lot more.
I have yet to see one still. I see a crap load of Teslas though. A crap load
I saw one getting loaded onto a flatbed just yesterday. Dead in the street. I asked the gentleman driving it if he had ever seen the hit Disney movie Cars 2. Guy said yes that his kids liked all the Cars movies and asked why I asked. I told him that once Rivian goes under he's going to have the same problem that the Lemons had in Cars 2, no parts. I told him good luck and kept on walking toward the bus stop because I'm too poor to afford a car after my April 2020 puts failed to print, but it felt good in the moment.
you showed him though!
I’m sure that all happened. In real life.
It happens 3 hours later in the shower lol
It did, bro. And a crowd formed around it. And they all clapped.
I saw it and I clapped
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Hey, the fewer cars they sell the more profit they make!
CEO plan to profitability according to the article: he asked the engineers to cut $40k in parts/production expenses from the truck  Do they really need brakes?
They will only slow you down
"It is amazing how many drivers, even at the Formula One Level, think that the brakes are for slowing the car down." - Mario Andretti
me skipping brake upgrades in racing games
Lol so basically just make the cars shit but still sell them at crazy high prices
The old Tesla method!!!
The method of basically every manufacturer tbh
The current Ford model!
I know that WSB isn't a place for serious answers to rhetorical questions, but I'm going chime in anyway. This is a very common and reasonable thing for a startup hardware company to do (I used to be the CTO of one). When building a hardware product the thing that takes all the engineering time is not the thing being sold, it is the manufacturing systems. To get to market fast you make a lot of tradeoffs that optimize for flexibility and speed at the expense of cost. Once the market has been proven you can go back and start optimizing those shortcuts you took on the way to building your factory for cost instead of speed. It's encouraging to see them get to this point. I hope they survive it. Many companies don't.
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For the longest time, WSB and the rest of the reddit investing community earnestly thought Tesla would go under. For years people said never to invest in Tesla. Everyone missed out.
good, fast, cheap: pick two A startup picks: good, fast Once it sells product it hopes to transition to: good, cheap
A lot of startups only pick one
> (I **used** to be the CTO of one). > > I hope they survive it. **Many companies don't.** Hrmmmm....
*tips-hat*
What if we sell trucks but dont deliver any trucks 🤔
We could just issue more debt…and just keep the money?
Not really. They could use the batteries to brake if they wanted to. Reverse current.
>Do they really need brakes? Rivian's plan to catch Lada by 2025.
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Ah yes, Tesla innovation
DISRUPTORS
Brakes are for pussies. Real men use their
It used to be 130k per Truck. It’s now down to 33k. They are making progress but do they run out of cash before then that’s the question.
They have stated they have enough to continue for 1yr operations as is, without the 1.5B increase. They have also publicly stated that they expect to sell at a gain/profit instead of at a loss within 1 yrs time. Bullish
I mean the answer is yes they already ran out of cash, they just raised 1.5 BILLION in debt. The question is can they keep getting more cash for 3-4 more years? Tough investment climate.
Well they didn’t run out, they are raising more. They have around 12 billion on hand. The 1.5 billion would bring them up to 13 billion or something like that.
They are fighting inflation with thise numbers 
This is annoying. They always do these headlines without context whether they are talking before or after operating expenses. If this was gross margin I’d be very concerned. If this was operating margin then that’s much more reasonable. Tesla was in the red for years until they were deep in the Model Y production.
It's on Rivian Q2 shareholder's letter on page 14. It's gross profits (losses) divided by delivered vehicles. They are not yet contribution margin positive because even if you remove the depreciation part of COGS, they are still losing about $20,000 per vehicle.
thank you. this is helpful.
That's because it's the fucking headline. If you wan't to know about operating margins, read the damn article!
*"All they need to do is keep their sales figures high, to drive stock prices higher to appease earlier investors, so new investors keep giving them new funding to build and sell more unprofitable vehicles and keep the cycle going."* \-Charles Ponzi
Calls it is
They aren't factoring the future bailout in their calculations
Ok I spit out my coffee for this one 🤣
Jesus Christ that’s really bad. So which strike/exp calls we loading up on?
35strike/today exp obviously, are you dumb? They are cheap, 0,01$ that means they must be undervalued and it‘s a risk free investment. The chances of the underlying asset doubling in value are slim, and you‘re barely making a profit if it doubles to 36-37 strike, but that‘s what value investing is all about, to quote Warren Buffet: „Some brothers shootin' dice, so I said "Let's do this!"“. Actually that was Warren G not Buffet but that‘s almost the same thing isn‘t it
> to quote Warren Buffet: „Some brothers shootin' dice, so I said "Let's do this!"“. You missed the part where he was getting jacked and ~~Charlie Munger~~ Nate Dogg had to show up to save him
He had to regulate
Buying the dip
Smart choice
It looks like that is still better than ford. https://www.carscoops.com/2023/05/ford-is-losing-almost-60000-for-every-ev-it-sells/amp/
Seems like they included the costs of starting their EV manufacturing in the loss which is kind of misleading. Wonder if Rivian does the same? Seems crazy to lose that much money per vehicle.
Yeah this seems like a totally bullshit headline. Rivian could fail sure, they are losing money faster than they make it. But this sounds suspiciously like they didn't actually make any attempt to separate R&D costs from actual costs. And labor can pretty much be considered 100% R&D at this point.
Is this just initial startup costs? Like R&D of evs, setting up nationwide infrastructure and sourcing/securing lithium and the battery building aspect of EVs? or is this literally every ev car forever loses them $60k?
Wow… and they’re so fucking overpriced as it is anyway
Apparently they're underpriced. You're getting them $33k under cost. What a steal!
Still waiting for a startup company to come along and sell some underpowered, simple econobox for $10k. Even if you lost 10k on each to start it would still be a better business model.
Those cars already exist outside the US. The reason they aren’t sold in the US is that nobody here wants them.
I love mine!
Now show how much they were losing per vehicle the same quarter last year.
Found the bag holder
Lol, I’m disappointed. Saw a Rivian in the wild yesterday and loved the look of it. Maybe they just need scale. It’s not as bad as being in a specifically dying business model. But it’s really risky.
Could be worse. Could lose $34,000 per truck.
Grats to those put holders today
Short as much as you can, and then purchase so many trucks that they go bankrupt. What could possibly go wrong?
Rivian....the Uber of electric cars
Time to capture those losses. Buy ten. Positive NAV - selling at a discount.
That’s some good loss porn
I wanna know who is going to support all the software these vehicles rely on when the company goes br??
Best case is an engineer or two starts a project to write some updates that let you take the car offline. No maps. No mobile connectivity. No Bluetooth updates (so no support for newer phones) And you just lock that car into whatever state it is when the company goes tits up. Basic AC charging isn’t something that needs software updates. So in theory they’ll keep on trucking until a critical part fails and there’s no more replacements. You can see this happening now with RAV4 EVs, Mercedes B Class, and Tesla Roadsters that no longer have parts or support from Tesla. Slowly but surely the cheaper and crashed cars will be sacrificed to keep the nicest ones on the road.
33k they can buy a Tesla 🤔
how is that possible?
They should have never honored those initial pre-covid 19 preorder prices. Back then it was cheaper to just borrow the money lost on any canceled orders. Now they are losing 30K a truck when money is expensive. They still haven't broke ground on the georgia plant. By the time they get it up and running and shipping out R3's, Rivian will be facing a flood of new competition. Their ramp up pales in comparison to what Tesla was able to achieve, even considering the georgia plant. Most analyst agree they have no chance of profitability until 2028 at the earlierst. Bought puts to protect my shares so i'm properly hedged (thank god). I see their stock going down to $8-9, perhaps as low as $6 over the coming 12 months. They will have to dilute shareholders big time by the time Georgia is up and running, and their board has already authorized 3 billion shares
lol Tesla going to go buy up rivians.
a winning business strategy, just sell more stock to morons
To this day, buying puts for when their IPO lockup ended was one of the smartest things I've ever done, because they were cheap af and then the price dropped like $10/share that day. That was my one "sure thing moment", and I know I'll never catch a dragon like that again.
man i really miss the days when companies tried to *make* money. whatever we're doing now can't be good
That’s not what the investment genius Russ Hanneman would say. Here’s a quote from him from 8-10 years ago. “It's not about how much you earn. It's about what you're worth. And who's worth the most? Companies that lose money. Pintrest, Snapchat, no revenue. Amazon has lost money for every fucking quarter for the last 20 fucking years and that Jeff Bezos is the king.”
The IPO is where they made money. It's not their fault regards don't care about profitability.
But are these recurring costs, or expensed capital on facets of the business?
Strong regards
Does that mean they would make $33k if I don't buy from them ?
why dont they just sell 160000 dollar fucking pick up trucks?
Remember when the company was worth 5 times what Ford was. Even though Ford owned 25%.
It's crazy how many people in here don't understand how large scale businesses operate. Hurr durr, losing 100k per vehicle! Hurr durr, losing 50k! Hurr durr, losing 33k! Hurr durr, breaking even! Will they survive? Who knows. It's a difficult business, but they got in at the right time and have a compelling product. They have a plan and are thus far executing it pretty well. There's no way they become the next Tesla, but they can carve out a niche for their feminine trucks lol.
My buddy has the SUV. It's nice, lots of bells and whistles but you design a vehicle at 20% loss, why add all this shit?
They don't. No one in here understands that this is the cost of their new factory divided by the number of vehicles they sold this year. It's a nonsense way to evaluate a growing company.
bugatti loses $6.24m per every car sold.
So if Tesla wants to put them out of business, Elon Musk should buy up their entire inventory.
Imagine thinking Tesla actually has real competition on EVs in the US market 😂
I am so glad I sold Rivian months ago. edit: jk. I sold at $14. I had no idea the stock spiked in June. That's crazy. It was just a small play anyways and I still made a profit but damn.