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Move Over Tesla?


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2021 Nov 16, 9:35pm   2,389 views  24 comments

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https://finance.yahoo.com/news/rivian-stock-price-is-still-going-haywire-172049109.html

"Rivian’s valuation makes it a legitimate option for institutional investors who have previously only had Tesla to play the electric vehicle space. We’ve done enough IPOs over the years to know some investors cycle through new companies as they go public, selling the 'old' name and replacing it with the 'new.' Tesla has been the only 'real' EV play in U.S. equity markets for years. Now it has competition for the marginal investor," the research team at DataTrek said.


I wonder if any of that is true Does anyone else think this explanation is a viable one, despite how else you may feel about the hype over EV companies?

Comments 1 - 24 of 24        Search these comments

1   Misc   2021 Nov 16, 11:16pm  

So the company has no sales revenue at all, but it is valued higher than Puerto Rico's GDP.

Too bad it has to have 4 profitable quarters in a row before being added to the S&P 500.

But with a scam this big, they may make an allowance for that and let it in right away.
2   Misc   2021 Nov 17, 12:14am  

HunterTits says
Misc says
So the company has no sales revenue at all, but it is valued higher than Puerto Rico's GDP.

Too bad it has to have 4 profitable quarters in a row before being added to the S&P 500.

But with a scam this big, they may make an allowance for that and let it in right away.


Uh, it has sales revenue. It has been shipping vehicles to customers. Vehicles that were purchased. Sales. Not being profitable doesn't change that.

Being valued higher than PR's GDP isn't something woth comparing, given what a shithole PR is.

What does the S&P have to so with the question posed and the context it was posed in? This is about Tesla's stock market dominance in the EV sector.


It has no sales revenue. Customers must take delivery of vehicles before sales revenue can be booked. It's been making sales but no deliveries.

https://www.yahoo.com/now/rivian-now-biggest-u-company-211713411.html

Over 3 million people live in Puerto Rica. It's still a US territory. There's only about 9K employed by Rivian. I'd say it's overvalued in comparison.

Generally when a stock is added to the index, it shoots up in price as the dumb index money is forced to buy. If it is added to the S&P right now (with its limited float), it could surpass Tesla's market cap.
3   Misc   2021 Nov 17, 12:28am  

Stocks??? Manipulated???

Oh. heaven forbid.
4   BayArea   2021 Nov 17, 5:26am  

Gentlemen,

Bookings (orders) and revenue recognition (typically on shipment/delivery/transfer of ownership) are two different things.
5   BayArea   2021 Nov 17, 5:50am  

Puerto Rico is beautiful this time of year 😀

Also, in the future, including a bit more thought in your post than the following might keep the discussion more focused

“I wonder if any of that is true”

Do you think Rivian can become a formidable competitor to the giant, Tesla? If so, why?
6   RC2006   2021 Nov 17, 6:25am  

HunterTits says
Misc says
Over 3 million people live in Puerto Rica. It's still a US territory. There's only about 9K employed by Rivian.


So fucking what? Is PR being traded on NASDAQ as a stock? #Whattaboutism


Don't think they allow penny stocks.
8   BayArea   2021 Dec 21, 10:43pm  

Booger says
https://www.zerohedge.com/markets/tesla-owner-blows-car-after-discovering-cost-fix-battery?source=patrick.net


That was fun to watch.

And yes, the price of a replacement battery definitely keeps me gun shy when it comes to buying a Tesla.
9   zzyzzx   2022 Dec 13, 12:03pm  

https://www.autonews.com/manufacturing/rivian-tries-squash-bedbug-problem-illinois-plant

The EV maker has brought in a pest control company and quarantined forklifts in an isolated area of its Illinois plant where bedbugs were seen.
10   DD214   2022 Dec 18, 7:33am  

Tesla Gets Some Friendly Advice From Former Ford CEO As Stock Sinks Further Deep

n the U.S., given that Tesla had a 100% market share once, it can only go down, Fields said. The market share erosion is mainly due to a lack of a product to compete in the under $50,000 category and this is going to be a challenge for Tesla, Fields added.

Tesla stock is doing the "electric slide" .

https://www.macrotrends.net/stocks/charts/TSLA/tesla/market-cap
11   rocketjoe79   2022 Dec 20, 9:37am  

Rivian is being propped up by Bezos. Their cash burn is unsustainable. And they are NOT making a "Cheap" EV. No one is. Ford and GM have raised prices on their EV's.
12   HeadSet   2022 Dec 20, 11:35am  

rocketjoe79 says

And they are NOT making a "Cheap" EV. No one is.

That Chevy Bolt I was loaned was priced at $27k down from $32k (right after the tax credit disappeared). It seemed like Chevy was targeting a cheap electric car market.
13   RWSGFY   2022 Dec 20, 12:09pm  

HeadSet says

rocketjoe79 says


And they are NOT making a "Cheap" EV. No one is.

That Chevy Bolt I was loaned was priced at $27k down from $32k (right after the tax credit disappeared). It seemed like Chevy was targeting a cheap electric car market.


Electric MINI Cooper is even cheaper after all incentives.
14   socal2   2022 Dec 20, 4:04pm  

rocketjoe79 says

Rivian is being propped up by Bezos. Their cash burn is unsustainable. And they are NOT making a "Cheap" EV. No one is. Ford and GM have raised prices on their EV's.


Not only that, every other automaker making EV's are still losing their shirt despite the high prices. No one but Tesla has figured out how to make them cheaply and at scale.

Without any incentives, and nearly zero debt after building 2 new massive state of the art factories (Austin and Berlin) - Tesla is already making Ferarri level gross margins on every car they make. Tesla has no legacy pension liabilities like all the other OEM's and is massively driving down the costs with things like the Gigapress. So they have alot of room to cut price while maintaining/growing margins in the coming years.

Who can catch them and how? Tesla doesn't even advertise.
15   socal2   2022 Dec 20, 4:07pm  

BayArea says

And yes, the price of a replacement battery definitely keeps me gun shy when it comes to buying a Tesla.


Nearly 10 year old battery on an early model Tesla.

Tesla has learned alot about battery management in the last decade. Very rare to hear about defective batteries now.
16   Booger   2022 Dec 20, 4:09pm  

RWSGFY says

Electric MINI Cooper is even cheaper after all incentives.


Yeah, but then you would be stuck with a MINI.
17   socal2   2022 Dec 20, 4:16pm  

DD214 says

Tesla Gets Some Friendly Advice From Former Ford CEO As Stock Sinks Further Deep

n the U.S., given that Tesla had a 100% market share once, it can only go down, Fields said. The market share erosion is mainly due to a lack of a product to compete in the under $50,000 category and this is going to be a challenge for Tesla, Fields added.


It can only go down?

I believe EV's only make up 6 percent of the overall US market compared to ICE.

No one is better set up to build a cheap EV than Tesla. But they don't need to right now when there is such high demand for the higher end, higher margin models.
18   richwicks   2022 Dec 20, 4:34pm  

socal2 says

Tesla has learned alot about battery management in the last decade. Very rare to hear about defective batteries now.


It's not a question of technology, it's just physics. You end up with what is called dendrites. These cause shorts in the battery. There are solutions but they are liquid metal batteries that operate at like 700C - they have to be heated. You can't operate a vehicle with these because the movement would mix the metals.
19   RWSGFY   2022 Dec 20, 7:04pm  

Booger says

RWSGFY says


Electric MINI Cooper is even cheaper after all incentives.


Yeah, but then you would be stuck with a MINI.


Beggars can't be choosers!
21   socal2   2023 Feb 2, 9:46am  

Tesla is killing all of the other OEM's with the recent price cuts.

Tesla is barely at scale with their two new factories in Austin and Berlin, yet they already have significantly higher margins than other OEMS making ICE cars. The margin delta is even bigger when compared to other OEM's high cost to make electric cars. Tesla can absorb the price cuts without significantly impacting margins and will only get better as they continue to scale up.

Tesla has virtually no debt (let alone legacy pension liabilities) and has nothing but clear sky ahead of them. The Cybertruck and smaller less expensive (Model 2?) will keep demand through the roof for the next several years.

I bought MOAR Tesla stock at the last dip at the beginning of the year and it is already up 80% YTD. I plan on holding long and hopefully retiring a few years earlier. Still a great buy now IMO.
23   mell   2023 Mar 9, 11:17am  

socal2 says

Tesla is killing all of the other OEM's with the recent price cuts.

Tesla is barely at scale with their two new factories in Austin and Berlin, yet they already have significantly higher margins than other OEMS making ICE cars. The margin delta is even bigger when compared to other OEM's high cost to make electric cars. Tesla can absorb the price cuts without significantly impacting margins and will only get better as they continue to scale up.

Tesla has virtually no debt (let alone legacy pension liabilities) and has nothing but clear sky ahead of them. The Cybertruck and smaller less expensive (Model 2?) will keep demand through the roof for the next several years.

I bought MOAR Tesla stock at the last dip at the beginning of the year and it is already up 80% YTD. I plan on holding long and hopefully retiring a few years earlier. Still a great buy now IMO.

I don't know I'd be careful and lock in gains you have if you have em. The xiden economy is wrecking new tech heavily, and worse, severely hampering consumer funds to spend. The stock is back on a downward trajectory (like many) and will have to prove continue profitability. They are here to stay but the valuation isn't cheap by any means and you will need a very long term outlook and be sure the competition will never catch up.
24   zzyzzx   2023 Jun 2, 8:51am  

https://finance.yahoo.com/news/rivian-may-lose-nasdaq-spot-162650181.html

Rivian May Lose Nasdaq Spot After 90% Selloff,

Shares of Rivian Automotive Inc., the money-losing electric vehicle startup, may get pushed out of the Nasdaq 100 Index as early as this month after plunging more than 90% from their record high, according to JP Morgan Securities.

The index typically removes the smallest members of the Nasdaq 100 if the company is weighted at less than 0.1% of the gauge for two consecutive months, JPMorgan analyst Min Moon writes in a note on Thursday. As Rivian was below 0.1% as of April 28 and May 31, Moon expects the carmaker to be excluded from the index on the third Friday of June.

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Esha Dey
Thu, June 1, 2023 at 1:58 PM EDT·1 min read
In this article:

RIVN
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(Bloomberg) — Shares of Rivian Automotive Inc., the money-losing electric vehicle startup, may get pushed out of the Nasdaq 100 Index as early as this month after plunging more than 90% from their record high, according to JP Morgan Securities.

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The index typically removes the smallest members of the Nasdaq 100 if the company is weighted at less than 0.1% of the gauge for two consecutive months, JPMorgan analyst Min Moon writes in a note on Thursday. As Rivian was below 0.1% as of April 28 and May 31, Moon expects the carmaker to be excluded from the index on the third Friday of June.

ON Semiconductor is ranked at the top of the eligible companies to replace the EV maker, Moon added.

A removal from the index would deal another blow to a stock that’s been pummeled since soon after its November 2021 initial public offering.

After briefly riding the frenzy for all things related to electric cars, Rivian’s shares started unraveling. Investors soured on risky growth names, correctly anticipating the Federal Reserve would raise rates to arrest inflation, in turn slowing the economy and making sales of an expensive electric pickup truck less likely.

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