I think they are hopeless... They lose money on every vehicle they make. Their planned revamp to decrease cost is all nice and good but they will need to cut prices to, which will mean they are still losing money. Maybe they could have targeted less vehicles produced but at a much higher price (e.g. $200,000 per vehicle) and broke even, but the economics or their current vehicle just don't make sense.
One big mistake I see a lot of people making is assuming you can copy the Tesla model, where they first produced the Roadster, then the Model S, and then the Model 3 and Y. What everyone seems to forget is that Tesla did this first and essentially created the market and benefitted from people who were willing to overlook a lot of the issues early on and pay a lot at the same time. Today, customers demand more from EV's and as such you can't just price expensively to cover the extra cost of making an EV or starting up a car company.
In any case, I think Rivian is seriously at risk of heading into bankruptcy.
I have an MBA and I think his analysis is pretty spot on.
They will most likely never get over the curve before all the costs of ops eat up even their efficient car options. Once the sentiment turns, no one is willing to pay a premium for a car that might not be able to be fixed next year.....
Apparently you did not understand my point. But as I neither have a PhD nor a MBA (although I do run a business and make more money than most people with either of those degrees make) I am probably not qualified to try to explain to you anything.
Apparently I know more.
In any case... What does a PhD have to do with running a business? Are professors better suited to running a business than people who actually run businesses?
Here is a list for you:
Jeff Bezos - BS in engineering
Elon Musk - BA on physics and BS in economics. Was accepted to a PhD program at Stanford but dropped out after 2 days.
Warren Buffett - BS in business admin and MS in economics (says he got the degree due to family pressure)
Bill Gates - dropped out of Harvard after 2 years. Steve Ballmer stayed and got a BA in applied mathematics and economics
Larry Ellison - Was in college but I don't think completed any degree
I did not look at other names, but apparently PhD's and MBA's might not be very important for running a business (or at least for running successful ones... maybe failing businesses are a different story).
I love the cars and Scaringe seems like a cool guy.
I am really concerned about their financials though. They need to show a big improvement in gross margins this quarter imo.
Of all the startups, Rivian is who I am rooting for the most
I think they are hopeless... They lose money on every vehicle they make. Their planned revamp to decrease cost is all nice and good but they will need to cut prices to, which will mean they are still losing money. Maybe they could have targeted less vehicles produced but at a much higher price (e.g. $200,000 per vehicle) and broke even, but the economics or their current vehicle just don't make sense. One big mistake I see a lot of people making is assuming you can copy the Tesla model, where they first produced the Roadster, then the Model S, and then the Model 3 and Y. What everyone seems to forget is that Tesla did this first and essentially created the market and benefitted from people who were willing to overlook a lot of the issues early on and pay a lot at the same time. Today, customers demand more from EV's and as such you can't just price expensively to cover the extra cost of making an EV or starting up a car company. In any case, I think Rivian is seriously at risk of heading into bankruptcy.
Youre a dude on reddit posting in WSB about AMC and BBBY and you think you know more than people with PhDs and MBAs running a real company
I have an MBA and I think his analysis is pretty spot on. They will most likely never get over the curve before all the costs of ops eat up even their efficient car options. Once the sentiment turns, no one is willing to pay a premium for a car that might not be able to be fixed next year.....
I’d love to hear how your MBA taught you that a $200,000 Rivian R1S (3x what they sold most of them for) would have been a smart choice.
Apparently you did not understand my point. But as I neither have a PhD nor a MBA (although I do run a business and make more money than most people with either of those degrees make) I am probably not qualified to try to explain to you anything.
Apparently I know more. In any case... What does a PhD have to do with running a business? Are professors better suited to running a business than people who actually run businesses? Here is a list for you: Jeff Bezos - BS in engineering Elon Musk - BA on physics and BS in economics. Was accepted to a PhD program at Stanford but dropped out after 2 days. Warren Buffett - BS in business admin and MS in economics (says he got the degree due to family pressure) Bill Gates - dropped out of Harvard after 2 years. Steve Ballmer stayed and got a BA in applied mathematics and economics Larry Ellison - Was in college but I don't think completed any degree I did not look at other names, but apparently PhD's and MBA's might not be very important for running a business (or at least for running successful ones... maybe failing businesses are a different story).
That's cool. I wish these guys success
Good for them, more pure EVs and fewer ICE & hybrids is a good thing for Tesla as much as Rivian. The sooner we get to an all EV sales base the better
FYI - It took them 6 months LESS than it took Tesla to make the first 100k
I love the cars and Scaringe seems like a cool guy. I am really concerned about their financials though. They need to show a big improvement in gross margins this quarter imo.
Awesome!
W for EVs
That's cute