Rivian increases prices by up to $16,000

bro1999 said:

I was seriously considering putting in a reservation for a R1S a few months ago, but guess it turns out it wouldn't have mattered as a reservation would have offered no price protection.

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A Letter from Rivian CEO RJ Scaringe on Pricing Updates

The following is a letter from Rivian CEO RJ Scaringe regarding pricing updates: Hello Everyone, Earlier this week, we announced pricing increases tha

www.businesswire.com

MisterJJ said:

Sounds like they'll trim costs and de-content a stripped model to satisfy the reservationists. Worked for Tesla, right? I suspect it will go even worse for them.

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RacerX00 said:

Actually from the statement it sounds like they're going to give me the quad motor car with the options I spec'd at the price they quoted me...

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RacerX00 said:

Well I know I revealed my ignorance in the actual particulars of the price of the stock earlier but the problem is once everything is this speculative who gives a crap. Long term I'd buy them as it's the correct move. When you're building companies this large you're expected to run at a loss for a period of time and that's been true since at least when we've been building rail roads and telegraph lines.

I would have guessed it'd be obvious that doing this to your reservation base in light of those basic business facts is a lot of what set off the price stock sale yesterday. Anyone who thinks like this, meaning, anyone who understands actual investing, was instantly, "holy crap, what the **** is actually going on with this company" when they did this to us reservation holders. Couple that with the VP saying they inflated financials specifically for the IPO? Woo boy.

Ford and Bezos are massively invested and one or both would be top contenders to swoop in and rescue the company. Believe it or not the R1T is part of Ford's bet hedging on the passenger truck segment in case the F150 doesn't make the transition. At these prices if I'm willing to bet on the 5-year term of a company, I would (but I'm no investor). I think Rivian is going to make it because it's become the bet that has to work for people that are bigger than them.

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RoadTripBiker said:

Not sure about lawsuit but do think they may be a takeover target but have to look at the price. What would it cost and what would the buyer get? Stock price probably too high now but Rivan is working on that

Had to look up production numbers. Built about 1,000 last year. Looks like they have a factory in Illinois that should be able to build 150,000 per year. Reservations for 71,000 - wahoo that number just dropped. So if they build just 100,000 this year then they will need to "sell" an additional 29,000. Next year say 150,000 but they have a plant in GA that will be online in 2024 and build 400,000 vehicles. Somewhere in the midst of all this they have to design and get into production another vehicle - presuming they SUV will be in production very soon.

Rivian Announces Production And Delivery Numbers For 2021

Rivian announced its production and delivery numbers for the year 2021, which happens to be close to the target hinted at in November.

insideevs.com

How many customers are out there for $95,000 vehicles? Market looks pretty crowded when you add in the ICE vehicles in that range. Ford backed out of the planned vehicle co-development with Rivan. Maybe they saw something that alerted them. Who knows how good the leadership team at Rivan really is. Some CEOs are good talkers and some know how to get the job done. Competition is pretty fierce for existing proven talent with other manufactures jumping into EVs. Add this to the difficult task of ramping up production and it is a very difficult road. Rivan has some interesting tech and design but think they have a long road ahead and some troubling signs.

Will be interesting to watch, Im predicting a good opportunity for shorts.

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redpoint5 said:

You haven't taken a loss unless you've realized it. Same can be said of gains.

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Fivedoor said:

The problem for Rivian is the F-150 Lightning and the Chevy Silverado EV. When it was a choice between the butt ugly Cybertruck, or the relatively normal looking Rivian (both of which will be expensive, with a token number of software limited Cybertrucks sold at the low promised price), the choice for most American's that could afford a $70K+ EV truck would have been the Rivian. But now with the F-150 Lightning and Chevy Silverado EV (both look normal, and both will sell for thousands of dollars less in base trim) I don't see much future for Rivian. The "I am so cool, look at me in my Eco friendly truck" people will get the Cybertruck... regular people will be drawn to the Ford and Chevy. Rivian will be left out in the cold.

Keith

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