The best part about this channel videos is, it directly starts with the content no intro music, no repeating the title, no asking to like and subscribe
Dude does a 12 minute video and then eight minutes into it says hey granted, we made a lot of assumptions and we could be way off. So basically what you’re saying is this whole video is BS and a waste of time because you have no firm data and you’re just making random assumptions. 😅
@@flagmichael my point is why not state at the beginning of the video that this is theory, and not fact. He didn’t disclose this until nearly the end of the of the video after he already hit his algorithm numbers. Kinda of bait ish.
I worked in tech for a while. One observation is that most people have a very narcissistic narrow view of the people are like and should be like. For example, most people I worked with thought that 60% of the population could and would spend $80k on a car, because those were the types of people who were in that bubble. When you live in an area where 50% of the cars are teslas, then you get a skewed view of what the world is really like.
Probably only valid for some “young professionals”. It’s very difficult for seniors and directors who have survived the 90s internet bubble to go light headed, into this skewed view. It’s fundamental that grounded work is always and only real asset. Some “young professionals” choose self-deception for various reasons. They do get upset when being reminded of reality. But it’s not a bad thing. If this “bubble” were true, we can make more observations, get closer to their Tesla driven skewed perspective, and design some fine financial tools (to short them). It will for sure turn their ego and skewed view into fortune.
Not just the guy at Home Depot. I live in a high COL city making over $150k. As do most of my friends. No one is buying an $80k car. $50k is pretty much it where people’s pockets max out. Esp with current interest rates.
Starting a business in 1950’s: Work to save up seed money, start a company with buddy, build product, grow, hire people, grow more, hire more people and remain profitable the entire time. Starting a business in the 2020’s: Come up with an idea, get VC money, hire 100,000 employees, build a prototype, IPO at $1 trillion valuation having never sold one product, have a massive bonfire in the back of the factory where you shovel investor money into 24/7 as fast as you can as you build products that are not profitable.
And New York money STILL demands a Yale/Harvard law degree or Economics from UChicago. Why??? You don't need it if you're gaming the process, doing a rug pull, and lookin good doing it.
You could also just claim you have a technology that doesn't exist and hope you can invent it with that VC money. The media will hype it up for free. Just ask Trevor Milton and Elizabeth Holmes.
Even if the company goes bye bye there is no aftermarket parts for this car nor are there shared parts. So if an electric motor goes out, you’re screwed.
That is exactly why I haven't bought one yet. I really want one and test drove both the T and the S, but the whole fisker ordeal scares me out of dropping $80k on one
They ran out of rich people who wanted to buy their cars. What seems to be the problem? Your target customers have finished buying your cars. Lower income folks cant buy your car.
Well its incredibly expensive and complex to make a car. And as shown it takes a lot to make profits off a car. I do wonder if they have always intended to be a premium brand or if they plan to work their way down and sit in or near the mainstream brands.
@baronvonjo1929 rivian is complex, and its verycexpensive for them to make a car. Legacy automakers have tons of electric cars abyone almost can afford the difference. Here is the base price
@@baronvonjo1929they plan to have models in the future that sell for under 50k the question is how will they make those profitable when they can’t make a profit on a more expensive model
Rivian was supposed to be one of the big players in the Ev market, especially with all the hype when they went public. Missing delivery targets like this can really shake investor confidence
It does look bad on the surface, but I think there’s more to the story. the Q3 numbers were weak, but we’ve seen this happen with new automakers before, especially those in the Ev space
Rivian is still in its early days, and ramping up production in the auto industry is no small feat, especially with supply chain issues and the competition heating up. That said, it does seem like a critical moment for them.
So, do you think this is just a short-term issue for Rivian, or is it a sign of bigger problems? I know they have the Amazon delivery van contract, but that might not be enough to carry them
I’m leaning toward it being a sign of bigger issues, honestly. Rivian’s biggest challenge isn’t just production; it’s demand. If customers aren’t buying their trucks and SUVs in large enough numbers, the company’s growth story falls apart
From what I understand, the trucks are really well made and have a good design. The people who own them really like it. They're just too expensive for the average person.
Well.. Not good enough. Suspension system is entry level for this type. Frame is not sturdy as it seems. The noise isolation is a half-way project. Even a bit humiliating to buyers. Two things: Functionally : It’s a truck. But cannot tow a trailer for camping: 1) charging station concerns; 2) run approx 1/3 mileage when towing a light-weight trailer (full charge) Social image: So..buying a truck but only to drive in the city, and for sure can not doing truck work. Fixing a plumbing component needs to charge a lot when drive it as a work car. Either way, becoming a laughingstock Probably my ego worths only a few cents.
Lol they cost on average 100,000+ per car. Youd expect not just "good" or "really well made" but great top of the line quality for such a price. I mean Toyotas are really well made and have good design and they sell for 30,000 and are affordable and reliable. Are rivian more well made and reliable than even a Corolla or Camry? I doubt it.
Does being "well made" include $30-40,000 repairs for relatively minor body damage? It's going to be tough to insure something with that kind of repair cost.
I am local the their Georgia "Plant". They paused construction of it about 9 months ago after a year of destroying the adjacent environment. What is concerning is that there is now a 1800+ acres of trees, rivers, and streams gone from the land scape. Thanks Rivan for destroying my community for nothing
I was at a Jeep dealership the another day and I saw 76K Jeep Wrangles (spiritual descendent of WW2 jeep). Mkay. 76K. Grand Jerokee 87K. These are very concerning numbers.
margins can make up for a lot of deficiencies. Buying materials in bulk can save a lot. Even rivian admits that greater cost savings from more purchases won't make up for the total amount they're losing. Their plan to retool the factory to save on assembly costs is interesting and a good step but even with greater material costs and assembly costs they're only planning to break even. I don't see how they're going to dig themselves out of the hold they've dug. Breaking even would be a great start and make them more attractive to investors but until they make enough profits to pay back their current investors they have one foot in the grave. They need more customers and they need to lower the costs. They're stuck in a circle. The customers wont come until they lower the costs. Without customers they have no money. Without money they can't lower costs.
This makes sense on paper. Setting up a manufacturing plant is very expensive and is only profitable for large production runs. Problem is that there may not be a large enough market for the product being produced.
I wrote on another video re the recent rivian announcement of cutbacks because of supply issues. No one else is having it.. This is a demand issue and they'll blame everyone and anything. If they confessed to demand issues, their shares would tank. Now during the actual shareholder meeting, they'll announce something positive that's way down the road. Rinse and repeat. Demand for $80k EV cars are exhausted.
Follow up. News article stating that rivian ordered less copper tubing than it should have. So.. Not supply issue per say but silly "mistake" on part of rivian. With 2 models and a single part to order, I find it hard even a 15 yr old could make this mistake. I think this was rivian seeing demand issues and purposefully building less cars. Otherwise can u imagine even more 10k cars sitting in lots.
@@Allen-L-Canada I'm favoring the latter. Even the most simplistic ordering system would have a spreadsheet with all the parts required for 1 car and then another cell for how many cars they plan to build. Multiply and you know how much you need. They would have ordered less of ALL parts. How do you order less of one supply? This company has repeatedly come up with excuses for missing the mark and then setting high expectations for the near future. Rinse and repeat.
@@External2737 BYD Shark is the closest you'll see to that at present, but you'll have to move to Mexico or elsewhere to buy it thanks to government policy.
The CEO will some how get a generous severance pay, while almost all of the other people there are stuck having to apply for unemployment compensation.
A severance for this guy will be a pity consolation prize. The real loss is the all the stock appreciation he coulda gotten if rivian to take off like Tesla instead that stock all but collapsed
I forget what the name of the company is but this same channel has a video about the worst EV company ever. And they didn't even sell a million dollars with a product but the CEO cashed out on 49 million in stock
@@phdonme1 that was Mullen Automotive. After six stock splits, one $3 share in MULN has lost 99.99999% of its value, a nominal loss in each share's value of _$2 billion_ ! Mullen lies about making its own cars and imports crummy Chinese battery-electric vans that nobody buys. As WSM says, Rivian is a legitimate company that makes tens of thousands of excellent cars. That's still no guarantee of success.
Rivian made the mistake of building a large plant before there was enough volume to support a large plant. The fixed cost will sink Rivian. Been there, done that, but we pulled the plug before the situation got critical. Its better to use contract manufactures who scale with the product.
I don't know if you know this. New car companies are almost never profitable for the first ten years. Let alone one using a completely new technology that many people outright hate. As much as I hate Elon now. He was smart with how much Tesla started focusing on manufacturing. Ever see the Monroe Live I think it is? It basically breaks down vehicles and explains things about car manufacturing. When he broke down one of the Teslas he would go over it. Tell you how so many design choices of the car were made with manufacturing in mind. Everything basically was, and he thought it was genius. I haven't seen the Cybertruck videos. Pretty sure that is an exception. It is a shame. People judge EVs on 2012 cars or first generation EVs. I hope these companies succeed as they are improving in every metric year in and out. You look at a top of a line Lucid, and are like holy shyte. The performance beats so many cars twice to three times the cost, but it is a daily driver luxury sedan beating the snot out of dedicated sports cars. Yet then you learn they are losing so much on each car. They are a god damn steal. Anyway price is dropping significantly each year. Once the price is cheaper, and chargers are made with range going up we will see more EVs. Electric motors are basically superior. Until someone makes a working vane engine which I hope they do!
It sounds like you don't know how stock market "evaluations (sic!)" work. Many companies go public at large valuations without having turned a profit beforehand. The capital from stock issuance gives them the ability to scale operations and if all goes well, turn a profit and provide a return to investors. The owners of the stock contribute to the valuation by purchasing shares, driving up the price.
Big chunk comes from ordinary working people masked out as institutional investors. These institutions are actually managing people 's investment and retirement accounts.
@@zvexevz lol, oh they are so smart giving a valuation of that size to an unproven commodity. I know the game. The system is flawed. And you geniuses wonder why it’s collapsing.. lol stop it
@@dianapennepacker6854 I know that, that’s the point..the evaluation was way too high for an unproven product. This is not Ford or an entity that was already established and profitable and went public. Bad move
I learned something in my life, which is that to prepare for a disappointment and unexpected ones too. I stay clear from these kind of brands until economies of scale start to take effect on overall EV industry.
Right they ran out of people with money to buy them. Who wants to buy anything that immediately depreciates when it gets into your hands. Especially $80,000 With the potential to not be in business soon
The best selling vehicle in the US, the Ford F150, currently has an average selling price of $58k new. Top trims of standard mid-size pickup trucks are directly comparable. Especially if you factor in the government incentives, fuel savings, and potential maintenance savings. I’m certainly not saying those prices are reasonable for the average American, but saying there isn’t a lot of demand for $60-$100k trucks simply isn’t accurate (unfortunately).
@@Vmac1394 Nobody can ever copy Tesla. The reason Tesla eventually succeeded is because they controlled 99.9% of market share for many years because they were the only EV car maker short of the Nissan Leaf which wasn't really competition. EV car makers need a near monopoly to run profitably. There isn't enough demand to support several manufactures.
In the 1920s, and up to the Depression, there were at least 25 car brands in the US, and and lots of them in Europe. The small ones disappeared, and the the best ones prospered. Almost the same thing with ev makers. Many interesting cars being built, but it's survival of the fittest.
I drive by rivian’s Vancouver Canada headquarter a lot. They must have around 60 vehicles there untouched since January. Nothing got sold. They Been sitting for months.
It sounds like something to keep at arms length right now. Seeking Alpha notes: "Spirit Airlines shares have plummeted 24.90% since August, with bankruptcy rumors looming, making the stock extremely high risk but potentially undervalued." Losing a quarter of its value in two months is not a comforting sign.
Fact is, a super powerful rock climber truck with an independant drive at each wheel isnt really necessary to navigate american roads, to get to work, other businesses, and peoples home. So paying 60k more for a vehicle that does that... there arent a lot of people who will. Im sure its a fine vehicle but I would find the money to buy it far more useful than the truck.
I had a 20-year-old pick up truck with full coverage. When I switched to a brand new electric that was worth at least 30,000 more dollars my insurance went up $10 a month. Tesla vehicles are the safest ever made, they are virtually impossible to steal, there’s no catalytic converter to saw off, and they have eight cameras that record everything. That is why the insurance is so low.
I actually asked my insurance agent (State Farm). Really no additional penalty, pretty much the same insurance cost for any ~$75K vehicle. Strongly considered it, however the only service center is 200 miles away which is not practical. Saw tons of them in North Seattle a month ago - around the Amazon / Google complex. Neat vehicles but no thanks for now.
I’ve been seeing a huge surge in Rivians by me (Boston area), and people seem to love them. They also have a ton of those Amazon delivery vans going around. The EV market in general is still growing, and much of the talk of EV demand dropping was overblown, as were stilling seeing a 30% growth in EV sales. Rivian is high quality, and made in the US, and their pricing isn’t that much higher than a traditional pickup truck. It shouldn’t be shocking that they aren’t profitable in their first few years. Automakers make money on volume/scale, and they are a still a startup.
I am pulling for all the Rivian employees, engineers and RJ. They make great vehicles. If you haven't, take a ride in a Rivian. That said, the selling price of the R1T & R1S is too high for Rivian to get enough scale to reach profitability. It is a Catch 22. They need scale to bring the cost per vehicle down. I do know they won't make it selling pickup trucks for $90,000 - with their current cost structure. Maybe they will become just a commercial van company?
The average price of a new truck in the US is over $50K. There are many trim levels that top out over $90K now. Their problem isn't price. Its that its an EV. All of the EV makers including Tesla are seeing demand drop. A company still trying to "mature" (execute properly) in the face of that isn't likely to survive.
@@obsidianjane4413 even in Canada I just did an EV trip of only 300 milles and while our charge stations are very common, even in rural areas, most are 7 kw: prepare to be there for a day or two, EVEN if you pay or it's free. ONE level 3 charge station was 30 klms. away: ONE spot. Drove to Innisfail just to charge up, free, at 30 kw. at the Hydro building. Olds, Ab. had a non-brand charge station: could figure it out, but it was going to be overnight!! inotherwords, if you're out of town or not on a known route, in the USA I understand a LOT of charge stations are not only unregulated, but not even functional. You can end up at "Last Chance Saloon" EV charge, and the equipment hasn't been put in place!!! Ouch.
@@Noah_E Not the point. The sales for $85,000-$90,000 trucks is relatively small. Ford sells about 750,000 F150s a year, but might only sell 5000 higher priced Ford Raptors. Rivian needs volume. They need scale. Honda's overall sales in the US in 2023 were 1,162,531 vehicles. Toyota reported year-end 2023 U.S. sales of 2,248,477 vehicles.
I am not going to buy a vehicle from a company that might not be in business in a couple of years. Where would I get the part to keep the vehicle working if they go out of business?
@@obsidianjane4413 Some the vast majority of car buyers aren't their target market? I guess their tiny volume makes sense then. Not sure how you're supposed to make money with that methodology and it doesn't look like they know how either.
@@muleorastromule3491 The "vast majority" aren't in the market for 80K+ EV cars. Those that have the disposable income for one, don't care if they go out of business and you can't get parts in a few years because they will have traded it in well before then. Also, this isn't a practical purchase decision, its one of ideology. They buy overpriced EV's to be "early adopters" of tech/virtue they support.
$16 billion basically just gone and still a couple of billion more to burn. It’s amazing how quickly investors will throw their money into unproven tech and just shrug of the massive waste of time and money.
Well. I imagine most of the VC firms are out already. Pump it up in media hype, bring it public as an IPO, pump it up more, sell high. Leave retail investors with the bag. Same formula as most SPAC’s. VC has become a cesspool of legalized pump and dump schemes. They pretend they fail 9/10 times but the 1/10 times they strike gold offsets the losses. And that’s just BS they tell the public. In fact, they profit 10/10 times. Who loses with a formula like that?
Obviously this is not "unproven tech." EVs are already a substantial percentage of new car sales. The combustion age _is_ ending, despite all the fossil fuel-funded misinformation making even rich people with a plug in their garage hesitant to buy an EV.
@@lokingbob your comment is ironic because Rivian wouldn't be in business at all if it weren't for Bezos' investments/contracts. One should really do more research into Rivian before comparing to/criticizing Tesla 🤣
From $7K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
I Hit 210k today thanks you for all the knowledge and nuggets you had thrown my way over the last months. Started last months 2024. Financial education is indeed required for more than 70%of the society in the country as very few literate on the subject. Thanks to Mrs Sophia for helping me achieve this
Wow. I'm a bit perplexed seeing her been mentioned here also Didn't know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been
It is really refreshing to see a comment about Sophia I have worked with her also. her approach consistently keeps you ahead of the trend, She's the best i'll say..
i've seen two deloreans on the road over the years and both were in europe (do one was in southern ireland which make some sense since they were made in the UK(northern ireland))
Delorean was used in the movie as a punch line. It wasn’t cool at all. It has very little going for it as a car other than the ability to make time travel and coke jokes.
@@SWright1978 You have no clue what you're talking about. The primary selling point of the DeLorean was safety. The performance ended up being disappointing due to the fairly low power of the PRV engine, but nobody ever thought it was a joke.
Scaringe's total compensation over the past three years is about $424 million, with about $421 million of that coming from the option to purchase about 27 million shares of Rivian stock.
Bc Amazon buying them at a loss or Amazon would just stick with ice. There's no market for short range commercial vans that are incredibly expensive and unreliable.
Amazon required that they were the only buyer, as part of their purchase and investment. They only broke that requirement recently. Rivian should have been building a backlog of business orders before that, but likely didn't
because it's a slow niche market without a lot of crossover, hence they can't production line their way to profits, and there is not a lot of markup available. very likely amazon got a great deal so breaking even at best. amazon demanded they were the only buyer and likely own or have restrictions on a lot of the upper body ip.
An electric vehicle uses around 90% of the energy that the battery produces. A combustion engine only gives you about 20% of the energy that gasoline gives you. The efficiency of an electric vehicle blows the combustion engine out of the water when you compare what you get for your money!
@@gmv0553 When your business plan is grounded in a dubious theory (catastrophic, human-induced climate change), subsidies, and fashion, market blow back is inevitable.
Not really in the grand scheme of things. It’s roughly 2 years wages for the median income, in line with higher trim gas trucks. On a historical basis they and their gas counterparts are all cheaper than the first crew cab trucks made in the great depression, 8 years wages for that time.
@@Bonanzaking "On a historical basis they and their gas counterparts are all cheaper than the first crew cab trucks made in the great depression, 8 years wages for that time." What a PROFOUNDLY STUPID argument!
@@joevarga5982 2 years wages isn’t ridiculous for a vehicle. I own a 1971 mustang that my father bought new. He paid 3,319$, or as he explained 2 years wages at the time for those at the bottom end of the income spectrum. If I look up a modern mustang same trim and everything well what do you know it’s still 2 years wages if you make minimum wage here in California. As to the OG crewcab trucks costing 8 years wages back in the Great Depression, well there was a reason why only the government bought them for the forestry service.
I really want to buy a rivian i love thier vehicals but the uncertainty of the company existing makes me hesitate, they really do make fantastic stuff and thier company vision and goals are awesome. I hope the more mass market vehical the R2 can pull them into profitability I will definitely buy one if that works out
Because most of the people shopping for a new truck are not looking to spend $100k on it. These are just status symbols for the rich, the regular truck buying public cannot afford one. These would be nice if the price were around $40-50k. Give me one good reason why I would buy a Rivian instead of a Tacoma or F150?
This was an excellent video! Rivian and some of these other “disrupters” are facing the reality of scaling for profit. Some parts need to be less than world class.
If you knew how the Amazon delivery service actually worked and saw the finances involved and the people running the "franchises" youd be really disappointed in it
Rivian's big effort resulted in a reduction of 65 parts per car. For comparison, when Lee Iacocca took over Chrysler, he reduced the number of parts in a standard sedan from 6,600 to 3,000 and change.
Imagine drawing a business plan before starting a company and consulting someone: A: Let's make a product and sell it for a 100 B: Cool, how much will it cost to make it? A: 130! B: That doesn't sound right A: Let's roll! What can go wrong.
Most big businesses lose money in the beginning. The goal to to acquire customers and scale up. Amazon lost money for the first 9 years. I remember a guy on CNBC saying this is the dummest business ever. Every book they sell they are losing $10. The more books they sell, the more money they lose. Now Amazon is making billions every quarter. It has a higher yearly profit than the GDP of some countries. Tesla sold cars at a loss, Apple sold computers at a lose... Thats why these companies go public, to raise cash to build the business. If they were profitable from year one they would not need to raise money.
Right - that would be like starting a company and loosing money your first 9 years!! So dumb - someone call Jeff Besos and let him know how dumb Amazon was.
@@YokohlCreek You know that Amazon is an exepction not a rule? Hoping that every startup will end up like amazon is dumb, but in the end it's not my money so good luck to them.
@@YokohlCreek You do realise that Amazon is an online retailer and Rivian is a car company? Amazon made a gross profit on the products they sold. They just needed to achieve massive scale to become profitable. Rivian makes a gross loss on each product they sell; that’s a dead end road.
They rent parking lot space from State Farm to park their unsold vehicles. Not long ago, they blamed poor sales on their inability to deliver finished vehicles due to their remote location - as if they had no idea where the factory was that they bought.
This video says "gross loss" of $33k/vehicle. Reality is much worse. Specifically, taking quarterly GAAP loss and dividing by number of vehicles sold, Rivian's GAAP loss per vehicle is clearly over $100k per vehicle: 3Q23 - $90k/vehicle 4Q23 - $107.4k/vehicle 1Q24 - $103.0k/vehicle 2Q24 - 105.7k/vehicle
They are what I have coined - 'TOO STARTUP TO FAIL' - with Amazon, Volkswagen and NVIDIA invested with them, they (Rivian and their partners) will leverage the government (aka YOUR TAX DOLLARS) to bail them out. Don't you just love paying to work on the plantation and provide luxury vehicles for the 1% class?
Nah, everyone knows Rivian is circling the drain. Rivian is only as big as it is because it emerged in an era where credit was basically free, so big companies could afford to throw billions into a "potential unicorn". Those days are over now, and Rivian isn't going to make the cut. VW is only still interested because they want Rivian's software, and whatever technology they can scavenge from the scraps.
@@crazypato3752 Look into researching all the different bailouts across all the different industries. When the government is pushing an agenda or if big multinationals are pushing for an agenda, they will get their way - taxpayers be dxmned!
Never would have made it this far without Amazon's deal. Maybe Space Cowboy can throw a few billion into keeping this money pit going a few more quarters.
I bought my ram 1500 for $15k I feel confident in my ability to maintain it, and I feel confident it its ability to work for me especially in the Colorado climate. Also, I live in an apartment, so I have no access to chargers. I am a regular “dude” this is what I need. Not a truck that goes 0-60 in 3 seconds, can’t even fit a bike in the bed, and I have VERY little faith these batteries will still be outputting when my dodge hits 300k miles
Tesla suffered losses almost every quarter during its early years and neared bankruptcy a couple of times with Elon contemplating a sale of Tesla to Google back in 2015 and then Apple in 2018. Let's hope Rivian is able to crawl thru 500 yards of capital-intensive shit and come out clean on the other side like Tesla did. We need more innovative EV companies like Tesla and Rivian.
@@Baebon6259 Yeah, but you didn't think that Tesla first started making affordable EVs right at the start, did you?? Tesla first started out making very expensive $100K+ EVs with the Roadster, Model S, and then Model X for a couple of years and they were losing money on every EV sold just like Rivian is dealing with now. The push to make the more affordable Model 3 in 2017/2018 pushed them to the brink of bankruptcy. With scale and demand came margin, profits and the ability to lower prices when needed.
@@Allen-L-Canada The Cybertruck is definitely in the unaffordable category. An expensive, experimental failure. But they did get to learn from it, such as 48V architecture, drive-by-wire, etc.
I do hope they can figure things out, i do like their styling and functionality. Their price tag is way beyond what i can afford, so i am not a target customer for them. But the more options we have, the better. I love that i am seeing more and more of them on the streets here in SoCal.
@@SCWgreg at this point, VW needs to just buy Rivian completely since they have the experience and resources to build cars at scale and Rivian can just focus on the software since VW is not good in that area
This is crazyI'm watching this now as I'm literally learning about contribution margins and FC and VC cost breakdowns in my managerial accouting class this week.
Can you do an analysis on Boeing? Will the company survive its sustained massive negative cash flow, along with all the problems they are facing, for much longer?
@@Ronniezim When the company is out of cash, it can be broken up and sold in pieces. Consolidation isn't new in aerospace. Lockheed take the fighter business, Northrop get the space business, Raytheon buy the missile business, Sierra acquire the commercial business. No more Boeing.
@@Ronniezim Boeing isn't the only US defense player. Lockheed Martin, Northrop Grumman, Ratheon. McDonnel Douglas failed and was acquired by Boeing. Who is to say Boeing won't merge, or just shed some of it's more unprofitable areas?
@@dasbubba841 Anyone with a brain. Consolidation only works if you have other companies to merge with and don't create monopolies. The 3 major airframers (only one civil airframer) and 2 engine manufacturers will not be allowed to disappear, as it would unduly undermine US economic and military interests. There will always be huge revenues for Boeing, they aren't nearly as bad off as people think.
They seem to have actively excluded 95% of the US population from any consideration as a market. tariffs on Chinese cars to protect this seems pretty gross
That is another can of worms.Chinese EV production is so subsidized it makes no sense to not tax them,especially if your car industry is a big job generator.
@@naamadossantossilva4736 I would read more about the supposed Chinese EV subsidies if I were you. All electric cars sold in China receive the subsidies, even foreign brands like Tesla and VW. Blaming the success of Chinese EVs on subsidies is sticking your head in the sand; Chinese cars are packing in so much technology for so cheap that they are simply the superior product. Dropping tariffs on Chinese EVs is very hypocritical and shortsighted. The US government and industry wants free trade when they can dominate the market, but retreat into protectionism as soon as a real threat appears. The tariffs just means the consumer has to buy a more expensive car with less capabilities where the market is captive, but outside of tariffs US cars will simply be unable to compete.
@@rollercoasterintogiantdomo Chinese cars should be allowed if they setup plants in US and open source their AI software for government inspecation. Otherwise US is signing death warrant to its economy. West cannot compete with wages of Indian., Chinese or Mexican workers
@@naamadossantossilva4736what do you think the $7.5k incentive in the US is.. Is that not government support. US EV companies have received billions...as soon as someone else builds a better car cheaper..oh no.. Tariffs. In the longer run, itll make them stronger and US companies less competitive in the global market. History has always proven that to be true. Never fight the natural flow of water.
Accidental Tech Podcast gave me some insight into owning a Rivian, and really any EV. How long it took to get a part, how electric charging can be annoying due to the infrastructure not being there yet, no CarPlay, cabin noise. I’ll be waiting to purchase an EV.
I think cabin noise is good on the gen 1 and great on the gen 2. Don't miss Carplay at all, Rivians software is excellent just like Tesla. Does things like casting almost any app (next update), livestreaming cameras to your phone and more. Haven't needed any major parts but for the minor service I needed, they gave me a Rivian loaner. Also road tripped between Minnesota, New Hamsphire and Tennessee, no problem charging it with the slightest bit of planning. It's really not a challenge at all. I'd never go back to a slow, high maintenance, low tech gas car.
I’m an engineer with an above average income. I’m overwhelmed trying to figure out how to buy a house which has doubled in cost to mortgage in 5 year, let alone buy a $80k+ vehicle! No wonder they’re not selling, they’re only for independently wealthy individuals.
Their cars have all the known issues of EVs (limited autonomy, heavy reliance on a lacklustre charging infrastructure, terrible resale value due to the battery wearing out) and only comes at a price that the vast majority of the population simply cannot afford, and at a time of economic uncertainty. I cannot figure out why there may be a lack in demand...
The demand for these vehicles is ridiculously strong. Just because they have an inventory of pre-builds doesn't mean there is not demand. I don't know what the source was for "10,000 unsold vehicles". In addition if there are 10,000 unsold vehicles where is mine that I've been waiting 3 months for along with 3 of my friends? Rivian builds 200+ vehicles per day! The fact they have a month or two of vehicles in their inventory store is a non issue. The only problem with Rivian right now is the supply chain mistake they just announced. This stock is a Long Term Strong Buy for now. Whether profitability comes in Q4 2024 or Q1 2025 it will indeed come and things will only improve from there.
When your business plan is grounded in a dubious theory (catastrophic, human-induced climate change), subsidies, and fashion, market blow back is inevitable.
I love their vehicles. However, you now have a negative feedback loop, people aren’t buying their cars which is causing uncertainty about the future which increases the number of people unwilling to buy their cars.
I believe that would be a positive feedback loop because the initial event (selling fewers cars) is causing a secondary event (people worried about the future of the company) which in turn causes a larger number of the initial event (selling fewer cars). Positive feedback loop is when the event loop causes the events inside to increase in frequency, ie moving away from equilibrium.
@@devilselbow I think you're confusing "positive" as meaning good and "negative" as meaning bad. Positive feedback just means that the event-loop causes events in the loop to increase in frequency, which means there's an increase in change (be it positive or negative). Negative feedback means the events in the loop work against each other and reduce the amount of change in the system (ie negative feedback results in moving towards an equilibrium). For example, think of a supply-demand curve. When an object has a huge increase in demand, the supply goes down and prices would go up due to higher demand. Those higher prices result in lower demand due to less people being able to afford it. This, in turn, lowers demand, which increases supply and lowers the price. Thus the negative feedback loop brings the system back to equilibrium. Regarding your point about the goal to be increasing car sales, the goal is completely independent from whether or not a feedback loop is positive or negative.
@@devilselbow I'm going by the definition of positive and negative feedback loops. Your interpretation just completely ignores that. Even if you want to define equilibrium as not existing (which doesn't matter because it still doesn't change the definition), the mechanism is still a positive feedback loop because the event-loop causes the events in the loop to increase in frequency, which is antithetical to negative feedback loops.
@@devilselbow I'm not arguing semantics, I'm arguing definitions.... Yes a positive feedback loop can result in a negative result if the events in the loop reinforce each other and cause the events to happen more frequently. This is THE DEFINITON of a positive feedback loop. I'm not trying to trick you or anything. You can search this up. Have a nice day though!
@@devilselbow the only person talking about feelings is you because you refuse to use the actual definition of feedback loops so that you could use your made up one 😆. And no, that is not a positive feedback loop "by my own definition." And I'm not using "my own definition.," I'm using the actual definition. It's obvious your critical reading skills are lacking. Go spend the 15 minutes it takes to research this. Like you said, you're wasting your time (but it's because you can't read).
Problem is that really few companies try to come out with an affordable product. They try to come out with the best possible product (and in the case of Rivisn and Lucid apparently they managed) but these products, despite the appeal, are unachievable for the masses. Ford didn’t start his successful business trying to get out the most performing and luxurious car in the world…
I don't know who needs to hear this, I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Abby Joseph Cohen. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150,000. If I can do this in a year, anyone can.
I went from no money to lnvest with to busting my A** off on Uber eats for four months to raise about $20k to start trading with Abby Joseph Cohen. I am at $128k right now and LOVING that you have to bring this up here
I know this FA, Abby Joseph Cohen Services but only by her reputation at Goldman Sachs; even though she's now involved in managing portfolios and providing investmnt guidance to clients. I have been trying to get in contact since I watched her interview on WSJ last month
The thing is people often doubt the prospects of financial advisors like Abby Joseph Cohen in business/markets today. Well it gives me more time to get ahead while they stew in their own pity and doubts as they childishly complain about those spreading the word
Great research and deep dive on the financial status. But are they too big to fail? Too much IP and goodwill to throw away at this point? Be acquired by Amazon? Apple? Or God forbid, VW?
Hilarious. Less than 20% of the population can afford an $85,000 as their daily driver. Far less than 20% of the public even HAVE conditions that would allow the use of such limited range vehicles. All this translates into a marketing nightmare. I'm driving 2 Mercedes Benz I bought used at 10 years of age & about 100k miles. I paid $5,000 each & have owned them for 8 & 10 years respectively. Parts are dirt cheap and available quickly from Amazon & other suppliers. I just LAUGH at the fiction that a RIVIAN is anything other that a Virtue signaling Luxury Good with a precipitous depreciation curve, that is SO impractical that it ONLY has appeal for Rich owners who undoubtedly have other gas or diesel vehicles to make up for the areas in which the RIVIAN falls short.
I absolutely looooove my Rivian. It's such a wonderful EV. I very much hope they survive and keep going. They could easily take over Jeep and other off-road competitors in the EV space.
All these companies are missing the bigger demographic.. the low to medium middle class. If they where to release a car at a cost of say 30-35k think you see a lot more sell
Look how good Hyundai is doing for example. There's a reason every luxury brand sans Ferrari (which is owned by mega comglomorate Exor) is just a small subsidiary of one of the larger auto makers. You can't survive as a company making ONLY luxury cars cause the market is way too small.
The best part about this channel videos is, it directly starts with the content no intro music, no repeating the title, no asking to like and subscribe
Dude does a 12 minute video and then eight minutes into it says hey granted, we made a lot of assumptions and we could be way off. So basically what you’re saying is this whole video is BS and a waste of time because you have no firm data and you’re just making random assumptions.
😅
Agree. So refreshing when a video starts right up without the usual preview crap.
@@Heist1000 They are acknowledging that not everything is known about the topic. Perhaps you are happier with conspiracy theories presented as fact?
@@flagmichael my point is why not state at the beginning of the video that this is theory, and not fact. He didn’t disclose this until nearly the end of the of the video after he already hit his algorithm numbers. Kinda of bait ish.
I just subscribed thanks to your comment. :)
I worked in tech for a while. One observation is that most people have a very narcissistic narrow view of the people are like and should be like. For example, most people I worked with thought that 60% of the population could and would spend $80k on a car, because those were the types of people who were in that bubble. When you live in an area where 50% of the cars are teslas, then you get a skewed view of what the world is really like.
Nailed it. Being here in the Bay Area is a lot like the show "Silicon Valley"
And our policy makers live in those bubbles.
9 out of 10 tech workers only think of themselves and think they are gods gift to the world. It’s pretty bizarre it’s so prevalent in one industry
Teslas aren’t even that expensive lol. The model 3 sedan new is significantly below average new car price, like 20% below it.
Probably only valid for some “young professionals”.
It’s very difficult for seniors and directors who have survived the 90s internet bubble to go light headed, into this skewed view. It’s fundamental that grounded work is always and only real asset. Some “young professionals” choose self-deception for various reasons. They do get upset when being reminded of reality.
But it’s not a bad thing. If this “bubble” were true, we can make more observations, get closer to their Tesla driven skewed perspective, and design some fine financial tools (to short them). It will for sure turn their ego and skewed view into fortune.
They only appeal to the top 10% of earners in the United States. Sorry if the guy working at Home Depot can’t afford a $90K truck.
Exactly. They need the R3 and R2 out ASAP.
Not just the guy at Home Depot. I live in a high COL city making over $150k. As do most of my friends. No one is buying an $80k car. $50k is pretty much it where people’s pockets max out. Esp with current interest rates.
@@AvocadoAtrocitywhich are physically impossible
@@Cherrypi393found the investment banker. All secretly poor because CoL is ridiculous in those cities.
Aren't most trucks nowadays costing 50k plus?
Starting a business in 1950’s: Work to save up seed money, start a company with buddy, build product, grow, hire people, grow more, hire more people and remain profitable the entire time.
Starting a business in the 2020’s: Come up with an idea, get VC money, hire 100,000 employees, build a prototype, IPO at $1 trillion valuation having never sold one product, have a massive bonfire in the back of the factory where you shovel investor money into 24/7 as fast as you can as you build products that are not profitable.
And New York money STILL demands a Yale/Harvard law degree or Economics from UChicago. Why??? You don't need it if you're gaming the process, doing a rug pull, and lookin good doing it.
@@DwightStJohn-t7y You have to be part of the clue to own slaves.
This is so accurate lmao 🤣🤣🤣 startup culture is an absolute cancer on our economy
Chevrolet had this growth model a century ago.
You could also just claim you have a technology that doesn't exist and hope you can invent it with that VC money. The media will hype it up for free. Just ask Trevor Milton and Elizabeth Holmes.
Great car and slick design but I’d be absolutely terrified of buying one knowing the company may not be around 5 years from now
Parts are hard enough to find with mature firms.......
Even if the company goes bye bye there is no aftermarket parts for this car nor are there shared parts.
So if an electric motor goes out, you’re screwed.
VW will acquire it
@@justSTUMBLEDuponcould you explain why?
That is exactly why I haven't bought one yet. I really want one and test drove both the T and the S, but the whole fisker ordeal scares me out of dropping $80k on one
Who’d have thought there is not a huge market for 100K dollar pickups that cost 30K to fix a dent. . .
now toyota, ford, and gm are almost in this cost category
-and can’t be insured
And goes less than 300 miles!
@@somethingclever1234not with all their vehicles though,
…California enters the chat.
They ran out of rich people who wanted to buy their cars. What seems to be the problem? Your target customers have finished buying your cars. Lower income folks cant buy your car.
Well its incredibly expensive and complex to make a car. And as shown it takes a lot to make profits off a car.
I do wonder if they have always intended to be a premium brand or if they plan to work their way down and sit in or near the mainstream brands.
This!
@baronvonjo1929 rivian is complex, and its verycexpensive for them to make a car. Legacy automakers have tons of electric cars abyone almost can afford the difference. Here is the base price
I don't want to hear any more class warfare cry babies. Rivian making a car you can afford would make things worse.
@@baronvonjo1929they plan to have models in the future that sell for under 50k the question is how will they make those profitable when they can’t make a profit on a more expensive model
Rivian was supposed to be one of the big players in the Ev market, especially with all the hype when they went public. Missing delivery targets like this can really shake investor confidence
It does look bad on the surface, but I think there’s more to the story. the Q3 numbers were weak, but we’ve seen this happen with new automakers before, especially those in the Ev space
Rivian is still in its early days, and ramping up production in the auto industry is no small feat, especially with supply chain issues and the competition heating up. That said, it does seem like a critical moment for them.
The market is more crowded now, with legacy automakers also entering the EV space, and Rivian can’t afford too many of these missteps
So, do you think this is just a short-term issue for Rivian, or is it a sign of bigger problems? I know they have the Amazon delivery van contract, but that might not be enough to carry them
I’m leaning toward it being a sign of bigger issues, honestly. Rivian’s biggest challenge isn’t just production; it’s demand. If customers aren’t buying their trucks and SUVs in large enough numbers, the company’s growth story falls apart
From what I understand, the trucks are really well made and have a good design. The people who own them really like it. They're just too expensive for the average person.
"Well made" should be the bear minimum for a 70k car (starting price).
Why would you take a chance buying an EV where the company is bleeding cash and the odds of going under are so high?
Well.. Not good enough. Suspension system is entry level for this type. Frame is not sturdy as it seems. The noise isolation is a half-way project.
Even a bit humiliating to buyers.
Two things:
Functionally : It’s a truck. But cannot tow a trailer for camping: 1) charging station concerns; 2) run approx 1/3 mileage when towing a light-weight trailer (full charge)
Social image:
So..buying a truck but only to drive in the city, and for sure can not doing truck work. Fixing a plumbing component needs to charge a lot when drive it as a work car.
Either way, becoming a laughingstock
Probably my ego worths only a few cents.
Lol they cost on average 100,000+ per car. Youd expect not just "good" or "really well made" but great top of the line quality for such a price.
I mean Toyotas are really well made and have good design and they sell for 30,000 and are affordable and reliable. Are rivian more well made and reliable than even a Corolla or Camry? I doubt it.
Does being "well made" include $30-40,000 repairs for relatively minor body damage? It's going to be tough to insure something with that kind of repair cost.
I am local the their Georgia "Plant". They paused construction of it about 9 months ago after a year of destroying the adjacent environment. What is concerning is that there is now a 1800+ acres of trees, rivers, and streams gone from the land scape. Thanks Rivan for destroying my community for nothing
Holy shit they need to be responsible for fixing that
Sustainability
I'm guessing the local government gladly handed over the land for cheap or free in exchange for promises of JAHBS.
Unfortunately pretty much all companies will destroy surrounding, Tesla included and locals at gigafactories have voiced this concern.
Making world greener by producing heavy SUVs to go grocery shopping is a joke in itself.
I was at a Jeep dealership the another day and I saw 76K Jeep Wrangles (spiritual descendent of WW2 jeep). Mkay. 76K. Grand Jerokee 87K. These are very concerning numbers.
Imagine, 76K for a jeep worth around 20K realistically....And they're surprised nobody is buying..
Guess you missed the $100k models
@@masoncnc
Fr
7 out of 10 of the worst selling vehicles in the USA are Stellantis.
A Grand Cherokee Laredo is $39K with the employee discount. Not bad at all and still very affordable. And I can get any color I want in my area 😂
Toys for rich people turns out to be a limited market. Who would have thunk it?
Poor Rivian. I hope things go better for Steve-O, like his new podcast.
I will never not see a Rivian vid with the CEO on the thumbnail and go through the comments looking for Steve-O comments
Wonder if he has a load of Rivian tatoos.
His company is struggling, still tho he certainly has turned his life around since he quit drinking!
its our fault for not being able to afford their $100k tuck or suv
Now you got it😅
Work Harder.😈
“We may have negative margins, but we make up for it in volume.”
Alibaba: 👀
👎
margins can make up for a lot of deficiencies. Buying materials in bulk can save a lot. Even rivian admits that greater cost savings from more purchases won't make up for the total amount they're losing. Their plan to retool the factory to save on assembly costs is interesting and a good step but even with greater material costs and assembly costs they're only planning to break even.
I don't see how they're going to dig themselves out of the hold they've dug. Breaking even would be a great start and make them more attractive to investors but until they make enough profits to pay back their current investors they have one foot in the grave.
They need more customers and they need to lower the costs. They're stuck in a circle. The customers wont come until they lower the costs. Without customers they have no money. Without money they can't lower costs.
😂
This makes sense on paper. Setting up a manufacturing plant is very expensive and is only profitable for large production runs. Problem is that there may not be a large enough market for the product being produced.
I wrote on another video re the recent rivian announcement of cutbacks because of supply issues. No one else is having it.. This is a demand issue and they'll blame everyone and anything. If they confessed to demand issues, their shares would tank. Now during the actual shareholder meeting, they'll announce something positive that's way down the road. Rinse and repeat. Demand for $80k EV cars are exhausted.
there are only that many of rich pick-up drivers.
Follow up. News article stating that rivian ordered less copper tubing than it should have. So.. Not supply issue per say but silly "mistake" on part of rivian. With 2 models and a single part to order, I find it hard even a 15 yr old could make this mistake. I think this was rivian seeing demand issues and purposefully building less cars. Otherwise can u imagine even more 10k cars sitting in lots.
@@Bren39 it’s either a communication issue or an honesty issue. The latter would be a red flag 🚩
@@Allen-L-Canada I'm favoring the latter. Even the most simplistic ordering system would have a spreadsheet with all the parts required for 1 car and then another cell for how many cars they plan to build. Multiply and you know how much you need. They would have ordered less of ALL parts. How do you order less of one supply? This company has repeatedly come up with excuses for missing the mark and then setting high expectations for the near future. Rinse and repeat.
If it was $45k I would have bought one in a heart beat
The market needs a $45k full size pickup. Whomever delivers on with enough horsepower to tow and 300+ miles range will thrive.
@@External2737 BYD Shark is the closest you'll see to that at present, but you'll have to move to Mexico or elsewhere to buy it thanks to government policy.
Yeah but what is $45,000.00 nowadays?
@@External2737you can buy a 2024 ford maverick 4 door truck for 38k
@@Philflash Yeah, its scary to say that!
The CEO will some how get a generous severance pay, while almost all of the other people there are stuck having to apply for unemployment compensation.
A severance for this guy will be a pity consolation prize. The real loss is the all the stock appreciation he coulda gotten if rivian to take off like Tesla instead that stock all but collapsed
Grifting investors to retire early.
You don't know that. Maybe he was getting paid in worthless stock options
I forget what the name of the company is but this same channel has a video about the worst EV company ever.
And they didn't even sell a million dollars with a product but the CEO cashed out on 49 million in stock
@@phdonme1 that was Mullen Automotive. After six stock splits, one $3 share in MULN has lost 99.99999% of its value, a nominal loss in each share's value of _$2 billion_ ! Mullen lies about making its own cars and imports crummy Chinese battery-electric vans that nobody buys.
As WSM says, Rivian is a legitimate company that makes tens of thousands of excellent cars. That's still no guarantee of success.
Rivian made the mistake of building a large plant before there was enough volume to support a large plant. The fixed cost will sink Rivian. Been there, done that, but we pulled the plug before the situation got critical. Its better to use contract manufactures who scale with the product.
I agree.
@@drd4059 is that you fisker trolling rivian now?
@@Bren39Fisker is/was also a dumpster fire, but at least they were operationally leaner.
yeah! Just like Boeing!
They didn't build a plant, they bought the old Mitsubishi factory in Normal, Illinois.
This is what happens when you give a billion dollar evaluation to a company that had no previous history of profitability… unbelievable
I don't know if you know this. New car companies are almost never profitable for the first ten years.
Let alone one using a completely new technology that many people outright hate.
As much as I hate Elon now. He was smart with how much Tesla started focusing on manufacturing.
Ever see the Monroe Live I think it is? It basically breaks down vehicles and explains things about car manufacturing.
When he broke down one of the Teslas he would go over it. Tell you how so many design choices of the car were made with manufacturing in mind. Everything basically was, and he thought it was genius.
I haven't seen the Cybertruck videos. Pretty sure that is an exception.
It is a shame. People judge EVs on 2012 cars or first generation EVs. I hope these companies succeed as they are improving in every metric year in and out.
You look at a top of a line Lucid, and are like holy shyte. The performance beats so many cars twice to three times the cost, but it is a daily driver luxury sedan beating the snot out of dedicated sports cars.
Yet then you learn they are losing so much on each car. They are a god damn steal.
Anyway price is dropping significantly each year. Once the price is cheaper, and chargers are made with range going up we will see more EVs.
Electric motors are basically superior. Until someone makes a working vane engine which I hope they do!
It sounds like you don't know how stock market "evaluations (sic!)" work. Many companies go public at large valuations without having turned a profit beforehand. The capital from stock issuance gives them the ability to scale operations and if all goes well, turn a profit and provide a return to investors. The owners of the stock contribute to the valuation by purchasing shares, driving up the price.
Big chunk comes from ordinary working people masked out as institutional investors. These institutions are actually managing people 's investment and retirement accounts.
@@zvexevz lol, oh they are so smart giving a valuation of that size to an unproven commodity.
I know the game.
The system is flawed.
And you geniuses wonder why it’s collapsing..
lol stop it
@@dianapennepacker6854 I know that, that’s the point..the evaluation was way too high for an unproven product. This is not Ford or an entity that was already established and profitable and went public.
Bad move
I learned something in my life, which is that to prepare for a disappointment and unexpected ones too. I stay clear from these kind of brands until economies of scale start to take effect on overall EV industry.
Who'd have thought there isn't a lot of demand for 80k cars, let alone an electric one. They've limited themselves to a very niche market.
They were trying to copy the Tesla production model, but Tesla did what Rivian was doing over 10 years ago.
Right they ran out of people with money to buy them.
Who wants to buy anything that immediately depreciates when it gets into your hands.
Especially $80,000
With the potential to not be in business soon
The best selling vehicle in the US, the Ford F150, currently has an average selling price of $58k new. Top trims of standard mid-size pickup trucks are directly comparable. Especially if you factor in the government incentives, fuel savings, and potential maintenance savings.
I’m certainly not saying those prices are reasonable for the average American, but saying there isn’t a lot of demand for $60-$100k trucks simply isn’t accurate (unfortunately).
"Let's make our flagship product a truck and target a market that doesn't buy trucks."
@@Vmac1394 Nobody can ever copy Tesla. The reason Tesla eventually succeeded is because they controlled 99.9% of market share for many years because they were the only EV car maker short of the Nissan Leaf which wasn't really competition. EV car makers need a near monopoly to run profitably. There isn't enough demand to support several manufactures.
In the 1920s, and up to the Depression, there were at least 25 car brands in the US, and and lots of them in Europe. The small ones disappeared, and the the best ones prospered. Almost the same thing with ev makers. Many interesting cars being built, but it's survival of the fittest.
The CEO dude answers questions like Elisabeth Holmes ...
I thought that was Elizabeth Holmes answering questions lol.
Hey
At least they have an actual product 😂😂😂
@@princemc35 True story on that.
@@princemc35it works just as reliably 😂
At least he delivered a product. Holmes didn't.
I drive by rivian’s Vancouver Canada headquarter a lot. They must have around 60 vehicles there untouched since January. Nothing got sold. They Been sitting for months.
😆 they may as well give them away.
We need a video on Spirit Airlines. Preferably before the market open on Monday 😅
FFIE would be a good one too. It has more to do with WSB than Rivian and it's a bigger joke.
This channel is for quality content
It sounds like something to keep at arms length right now. Seeking Alpha notes: "Spirit Airlines shares have plummeted 24.90% since August, with bankruptcy rumors looming, making the stock extremely high risk but potentially undervalued." Losing a quarter of its value in two months is not a comforting sign.
Isn’t their fleet of airbus planes creates a unique situation. Airbus planes are highly sought after and sold out through 2030.
Fact is, a super powerful rock climber truck with an independant drive at each wheel isnt really necessary to navigate american roads, to get to work, other businesses, and peoples home. So paying 60k more for a vehicle that does that... there arent a lot of people who will.
Im sure its a fine vehicle but I would find the money to buy it far more useful than the truck.
I can only imagine how much insurance companies charge owners of these cars more. Also repair after accidents must be written off for everything.
Accidents aren't more common that I know of, but the fires are simply impossible to extinguish
I had a 20-year-old pick up truck with full coverage. When I switched to a brand new electric that was worth at least 30,000 more dollars my insurance went up $10 a month. Tesla vehicles are the safest ever made, they are virtually impossible to steal, there’s no catalytic converter to saw off, and they have eight cameras that record everything. That is why the insurance is so low.
@@richardfolden3860 insurance for electric cars on average is $44 a month more per car. It says that the price is going down year by year.
@@richardfolden3860 they do have very safe cars for crash test ratings
I actually asked my insurance agent (State Farm). Really no additional penalty, pretty much the same insurance cost for any ~$75K vehicle. Strongly considered it, however the only service center is 200 miles away which is not practical.
Saw tons of them in North Seattle a month ago - around the Amazon / Google complex. Neat vehicles but no thanks for now.
I’ve been seeing a huge surge in Rivians by me (Boston area), and people seem to love them. They also have a ton of those Amazon delivery vans going around.
The EV market in general is still growing, and much of the talk of EV demand dropping was overblown, as were stilling seeing a 30% growth in EV sales.
Rivian is high quality, and made in the US, and their pricing isn’t that much higher than a traditional pickup truck. It shouldn’t be shocking that they aren’t profitable in their first few years. Automakers make money on volume/scale, and they are a still a startup.
I dont understand the concept of selling credits. Its like commiting a crime and paying someone to go to jail for you,,
Well not bad if you have a net positive still a step in the right direction
They big companies finance the green scam is the rationale
Welcome to the corporatocracy.
That is exactly the concept of credits.
Economic atonement.
I am pulling for all the Rivian employees, engineers and RJ. They make great vehicles. If you haven't, take a ride in a Rivian. That said, the selling price of the R1T & R1S is too high for Rivian to get enough scale to reach profitability. It is a Catch 22. They need scale to bring the cost per vehicle down. I do know they won't make it selling pickup trucks for $90,000 - with their current cost structure. Maybe they will become just a commercial van company?
The average price of a new truck in the US is over $50K. There are many trim levels that top out over $90K now. Their problem isn't price. Its that its an EV. All of the EV makers including Tesla are seeing demand drop. A company still trying to "mature" (execute properly) in the face of that isn't likely to survive.
$90k isn't much for a truck in America. I own a tree farm and our last round of new trucks was $86k, $97k, and $104k.
@@obsidianjane4413 even in Canada I just did an EV trip of only 300 milles and while our charge stations are very common, even in rural areas, most are 7 kw: prepare to be there for a day or two, EVEN if you pay or it's free. ONE level 3 charge station was 30 klms. away: ONE spot. Drove to Innisfail just to charge up, free, at 30 kw. at the Hydro building. Olds, Ab. had a non-brand charge station: could figure it out, but it was going to be overnight!! inotherwords, if you're out of town or not on a known route, in the USA I understand a LOT of charge stations are not only unregulated, but not even functional. You can end up at "Last Chance Saloon" EV charge, and the equipment hasn't been put in place!!! Ouch.
@@Noah_E Not the point. The sales for $85,000-$90,000 trucks is relatively small. Ford sells about 750,000 F150s a year, but might only sell 5000 higher priced Ford Raptors. Rivian needs volume. They need scale. Honda's overall sales in the US in 2023 were 1,162,531 vehicles. Toyota reported year-end 2023 U.S. sales of 2,248,477 vehicles.
@Noah_E your average person cannot afford that. For a business like yours the choice is limited so you kind have to spend the money.
Through 3 QTR, they've sold 42,610 units. The only Rivians I see on the road are Amazon vans.
R1T/R1S are very, very common in the Bay Area, but it sounds like even in an affluent area they are running out of customers.
They are all over the place in the “upper income” community I live in here in Colorado….
@mustangthings thats because tesla is doubleplus bad now because of Musk's social media antics
There's a few driving around the Seattle area. I've seen more cyber trucks though, which isn't a good sign.
I see Rivians all day long.
They’ll be looking for Ch. 11 soon- Great episode man 👌🏼
I am not going to buy a vehicle from a company that might not be in business in a couple of years. Where would I get the part to keep the vehicle working if they go out of business?
They use the same parts as every other car.
@ShaneMclane-PrivateEye They most definitely do not other than tires, pads and wipers.
If you even consider this, you aren't in their target demographic.
@@obsidianjane4413 Some the vast majority of car buyers aren't their target market? I guess their tiny volume makes sense then. Not sure how you're supposed to make money with that methodology and it doesn't look like they know how either.
@@muleorastromule3491 The "vast majority" aren't in the market for 80K+ EV cars. Those that have the disposable income for one, don't care if they go out of business and you can't get parts in a few years because they will have traded it in well before then. Also, this isn't a practical purchase decision, its one of ideology. They buy overpriced EV's to be "early adopters" of tech/virtue they support.
telling investors “just keep us afloat til the end of the year and by then we’ll surely be profitable” ah a tale as old as time.
$16 billion basically just gone and still a couple of billion more to burn. It’s amazing how quickly investors will throw their money into unproven tech and just shrug of the massive waste of time and money.
Well. I imagine most of the VC firms are out already. Pump it up in media hype, bring it public as an IPO, pump it up more, sell high. Leave retail investors with the bag. Same formula as most SPAC’s. VC has become a cesspool of legalized pump and dump schemes. They pretend they fail 9/10 times but the 1/10 times they strike gold offsets the losses. And that’s just BS they tell the public. In fact, they profit 10/10 times. Who loses with a formula like that?
Go look up who are the major investors into these companies. It is likely your own money.
Obviously this is not "unproven tech." EVs are already a substantial percentage of new car sales. The combustion age _is_ ending, despite all the fossil fuel-funded misinformation making even rich people with a plug in their garage hesitant to buy an EV.
I mean
Look at Tesla
It's not unproven tech by now, every car maker is building using same tech. Rivian's problems lie in other areas.
They need to make a smaller version of the Amazon vans for the general public or other delivery companies
I counted 24 Cyber trucks sitting on the show lot at my local Tesla dealership today. Weren't they supposed to have 3M pre-orders? 🤣🤣🤣
lol you think those trucks won't be sold? they will be, and they won't lose $30k each when they do
@@mileyeyedcoyote does it count if trump is buying half of them/
@@lokingbob your comment is ironic because Rivian wouldn't be in business at all if it weren't for Bezos' investments/contracts. One should really do more research into Rivian before comparing to/criticizing Tesla 🤣
@@mileyeyedcoyote you definitely missed my point boo
@@lokingbob yah it wasn’t really articulated so I definitely missed it. What is your point?
From $7K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
Wow that's awesome
But I still love my mentor Sophia
I Hit 210k today thanks you for all the knowledge and nuggets you had thrown my way over the last months. Started last months 2024. Financial education is indeed required for more than 70%of the society in the country as very few literate on the subject. Thanks to Mrs Sophia for helping me achieve this
Wow. I'm a bit perplexed seeing her been mentioned here also Didn't know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been
It is really refreshing to see a comment about Sophia I have worked with her also. her approach consistently keeps you ahead of the trend, She's the best i'll say..
Rivian will end up like Fisker, a has been, great idea, bad timing.
Rivian is the new Delorean. Will appear in futuristic movies & become a collector car, but you'll never see one on the roads
Doesn't look futuristic to me. The DeLorean still looks cool.
i've seen two deloreans on the road over the years and both were in europe (do one was in southern ireland which make some sense since they were made in the UK(northern ireland))
Delorean was used in the movie as a punch line. It wasn’t cool at all. It has very little going for it as a car other than the ability to make time travel and coke jokes.
@@SWright1978 You have no clue what you're talking about.
The primary selling point of the DeLorean was safety. The performance ended up being disappointing due to the fairly low power of the PRV engine, but nobody ever thought it was a joke.
There are a ton of them on the road in Southern California. In my neighborhood alone there are a dozen of them. Best car I’ve ever owned!
FISKER 2.O
"We're getting really good at making a car that no one wants to buy".
Scaringe's total compensation over the past three years is about $424 million, with about $421 million of that coming from the option to purchase about 27 million shares of Rivian stock.
I’m surprised they didn’t get more of a boost from being Amazon’s supplier of EV delivery vans, and market that platform to more commercial customers.
Bc Amazon buying them at a loss or Amazon would just stick with ice. There's no market for short range commercial vans that are incredibly expensive and unreliable.
@@TheGuruStudlmao on the reliability part. I guess all the ram promasters would disagree with you.
Amazon required that they were the only buyer, as part of their purchase and investment. They only broke that requirement recently. Rivian should have been building a backlog of business orders before that, but likely didn't
because it's a slow niche market without a lot of crossover, hence they can't production line their way to profits, and there is not a lot of markup available. very likely amazon got a great deal so breaking even at best. amazon demanded they were the only buyer and likely own or have restrictions on a lot of the upper body ip.
Main problem is repair cost are horrible. Along with the normal deficiencies of EV’s.
An electric vehicle uses around 90% of the energy that the battery produces. A combustion engine only gives you about 20% of the energy that gasoline gives you. The efficiency of an electric vehicle blows the combustion engine out of the water when you compare what you get for your money!
@@gmv0553 Your comment is completely unrelated. Should look up the difference between deficient and inefficient.
@@gmv0553 When your business plan is grounded in a dubious theory (catastrophic, human-induced climate change), subsidies, and fashion, market blow back is inevitable.
Some of the body panels cannot be replaced from what I've heard. Totaling cars for fender benders drives up insurance costs tremendously.
They are simply TOO EXPENSIVE.
Not really in the grand scheme of things. It’s roughly 2 years wages for the median income, in line with higher trim gas trucks.
On a historical basis they and their gas counterparts are all cheaper than the first crew cab trucks made in the great depression, 8 years wages for that time.
@@Bonanzaking 2 years wages is RIDICULOUS for a vehicle. The REAL cost comes when it burns your house down.
@@Bonanzaking "On a historical basis they and their gas counterparts are all cheaper than the first crew cab trucks made in the great depression, 8 years wages for that time."
What a PROFOUNDLY STUPID argument!
@@joevarga5982 2 years wages isn’t ridiculous for a vehicle. I own a 1971 mustang that my father bought new. He paid 3,319$, or as he explained 2 years wages at the time for those at the bottom end of the income spectrum. If I look up a modern mustang same trim and everything well what do you know it’s still 2 years wages if you make minimum wage here in California.
As to the OG crewcab trucks costing 8 years wages back in the Great Depression, well there was a reason why only the government bought them for the forestry service.
@@Bonanzaking Clown, have you ever even bought a car in your life? You still live with your mom and don't even drive, I'll bet.
Great job on this video! Love this “consultant” type analysis to paint the picture broadly
Buying Rivian is like flogging a already dead horse.
it's a shiny toy for people that want to drive a $90k car that will be junk in 5 years.
I really want to buy a rivian i love thier vehicals but the uncertainty of the company existing makes me hesitate, they really do make fantastic stuff and thier company vision and goals are awesome. I hope the more mass market vehical the R2 can pull them into profitability I will definitely buy one if that works out
Because most of the people shopping for a new truck are not looking to spend $100k on it. These are just status symbols for the rich, the regular truck buying public cannot afford one. These would be nice if the price were around $40-50k. Give me one good reason why I would buy a Rivian instead of a Tacoma or F150?
Demand is here, but prices are not. I remember that time when all automakers decided they were going to compete with established luxury brands.
Bit of shame. Good looking and good quality cars by all accounts.
Just like a Porche or Lamborghini.
I don't care for the headlight styling, but otherwise good looking vehicles. 😊
Tesla biggest advantage when lowering price is doing almost evrything inhouse just like spacex.
Also they're the only scaled up in an industry that favors big factories
This was an excellent video! Rivian and some of these other “disrupters” are facing the reality of scaling for profit. Some parts need to be less than world class.
So Rivian isn’t really a car maker. It’s a tax shelter.
If you knew how the Amazon delivery service actually worked and saw the finances involved and the people running the "franchises" youd be really disappointed in it
Rivian's big effort resulted in a reduction of 65 parts per car.
For comparison, when Lee Iacocca took over Chrysler, he reduced the number of parts in a standard sedan from 6,600 to 3,000 and change.
Imagine drawing a business plan before starting a company and consulting someone:
A: Let's make a product and sell it for a 100
B: Cool, how much will it cost to make it?
A: 130!
B: That doesn't sound right
A: Let's roll! What can go wrong.
Most big businesses lose money in the beginning. The goal to to acquire customers and scale up. Amazon lost money for the first 9 years. I remember a guy on CNBC saying this is the dummest business ever. Every book they sell they are losing $10. The more books they sell, the more money they lose. Now Amazon is making billions every quarter. It has a higher yearly profit than the GDP of some countries. Tesla sold cars at a loss, Apple sold computers at a lose... Thats why these companies go public, to raise cash to build the business. If they were profitable from year one they would not need to raise money.
Right - that would be like starting a company and loosing money your first 9 years!! So dumb - someone call Jeff Besos and let him know how dumb Amazon was.
@@YokohlCreek You know that Amazon is an exepction not a rule? Hoping that every startup will end up like amazon is dumb, but in the end it's not my money so good luck to them.
5:02 love how the CEO giving an interview causes the stock to plummet in real time 😂
Just imagine you're a company, and the more products you sell the more money you lose. XD
A lot of new big companies do this, in the hope more orders down the line but at $85k+ per car is a small buyers market to gamble in.
Been there, done that, it did not last long and was not fun.
They’ll make it up in quantity. 😂
You lack understanding - it took 9 years for an Amazon to make a profit.
@@YokohlCreek You do realise that Amazon is an online retailer and Rivian is a car company? Amazon made a gross profit on the products they sold. They just needed to achieve massive scale to become profitable. Rivian makes a gross loss on each product they sell; that’s a dead end road.
They rent parking lot space from State Farm to park their unsold vehicles. Not long ago, they blamed poor sales on their inability to deliver finished vehicles due to their remote location - as if they had no idea where the factory was that they bought.
This video says "gross loss" of $33k/vehicle. Reality is much worse. Specifically, taking quarterly GAAP loss and dividing by number of vehicles sold, Rivian's GAAP loss per vehicle is clearly over $100k per vehicle:
3Q23 - $90k/vehicle
4Q23 - $107.4k/vehicle
1Q24 - $103.0k/vehicle
2Q24 - 105.7k/vehicle
They are what I have coined - 'TOO STARTUP TO FAIL' - with Amazon, Volkswagen and NVIDIA invested with them, they (Rivian and their partners) will leverage the government (aka YOUR TAX DOLLARS) to bail them out. Don't you just love paying to work on the plantation and provide luxury vehicles for the 1% class?
Nah, everyone knows Rivian is circling the drain. Rivian is only as big as it is because it emerged in an era where credit was basically free, so big companies could afford to throw billions into a "potential unicorn". Those days are over now, and Rivian isn't going to make the cut. VW is only still interested because they want Rivian's software, and whatever technology they can scavenge from the scraps.
How can they leverage the taxi money ?? I don't understand that why would the goverment loan Rivia tax payer money ?.
@@crazypato3752 Gimmick money
@@crazypato3752 Look into researching all the different bailouts across all the different industries. When the government is pushing an agenda or if big multinationals are pushing for an agenda, they will get their way - taxpayers be dxmned!
@@crazypato3752 well rivian applied for it to build the ga plant and the govt is looking into it. Loan as in never gonna get repaid.
Great coverage and analysis. Thank you! 🙌🏾 ⚡️
Never would have made it this far without Amazon's deal. Maybe Space Cowboy can throw a few billion into keeping this money pit going a few more quarters.
The Cheapest is $70,000? They should go bankrupt now.
The Adam Neumann business model can only get you so far; suck all the cash from your investors.
I thought that was the Alfred E. Newman business model.
Yep like how Amazon sucked all the cash from investors for 9 years before turning a profit
This guy looks like a Steve-o in a different universe where he never took drugs
I bought my ram 1500 for $15k I feel confident in my ability to maintain it, and I feel confident it its ability to work for me especially in the Colorado climate. Also, I live in an apartment, so I have no access to chargers. I am a regular “dude” this is what I need. Not a truck that goes 0-60 in 3 seconds, can’t even fit a bike in the bed, and I have VERY little faith these batteries will still be outputting when my dodge hits 300k miles
Tesla suffered losses almost every quarter during its early years and neared bankruptcy a couple of times with Elon contemplating a sale of Tesla to Google back in 2015 and then Apple in 2018. Let's hope Rivian is able to crawl thru 500 yards of capital-intensive shit and come out clean on the other side like Tesla did. We need more innovative EV companies like Tesla and Rivian.
unfortunately the truck drivers are not the rich customer base, unlike Tesla.
Except Tesla still make affordable EVs. Rivian doesn't. That is the biggest difference. Rivian straight up priced themselves out of the market.
@@Baebon6259 Yeah, but you didn't think that Tesla first started making affordable EVs right at the start, did you?? Tesla first started out making very expensive $100K+ EVs with the Roadster, Model S, and then Model X for a couple of years and they were losing money on every EV sold just like Rivian is dealing with now. The push to make the more affordable Model 3 in 2017/2018 pushed them to the brink of bankruptcy. With scale and demand came margin, profits and the ability to lower prices when needed.
@@Allen-L-Canada The Cybertruck is definitely in the unaffordable category. An expensive, experimental failure. But they did get to learn from it, such as 48V architecture, drive-by-wire, etc.
@@Mxyzptlk30 You're very dumb if you think Cybertruck will be a failure. It will disrupt the pickup truck market entirely as costs come down.
I do hope they can figure things out, i do like their styling and functionality. Their price tag is way beyond what i can afford, so i am not a target customer for them. But the more options we have, the better. I love that i am seeing more and more of them on the streets here in SoCal.
The 5 billion injection from VW could well be what saves Rivian. Time will tell. The R2 and R3 absolutely need to be brought forward to market.
Not if you just heard how he outlined the VW investment plays out. Not enough, fast enough, so they will still need more.
@@SCWgreg at this point, VW needs to just buy Rivian completely since they have the experience and resources to build cars at scale and Rivian can just focus on the software since VW is not good in that area
@@BLACKAAROW agree… but I’m not sure VW’s cash position is all that strong either. They’re hanging on by a thread, bleeding on all fronts.
This is crazyI'm watching this now as I'm literally learning about contribution margins and FC and VC cost breakdowns in my managerial accouting class this week.
If im rich, buying a car for 90k that cost 140k to make isn't a bad deal. Feels like im beating the system.
Yeah, but if it only is worth $50K a year later that buzz from "the win" might be ephemeral.
Stevo is looking jacked in the thumbail though
Can you do an analysis on Boeing? Will the company survive its sustained massive negative cash flow, along with all the problems they are facing, for much longer?
@@aerohk MIC will make sure Boeing is safe. Not even a question
@@Ronniezim When the company is out of cash, it can be broken up and sold in pieces. Consolidation isn't new in aerospace. Lockheed take the fighter business, Northrop get the space business, Raytheon buy the missile business, Sierra acquire the commercial business. No more Boeing.
They will surely survive 😂
@@Ronniezim Boeing isn't the only US defense player. Lockheed Martin, Northrop Grumman, Ratheon. McDonnel Douglas failed and was acquired by Boeing. Who is to say Boeing won't merge, or just shed some of it's more unprofitable areas?
@@dasbubba841 Anyone with a brain. Consolidation only works if you have other companies to merge with and don't create monopolies. The 3 major airframers (only one civil airframer) and 2 engine manufacturers will not be allowed to disappear, as it would unduly undermine US economic and military interests. There will always be huge revenues for Boeing, they aren't nearly as bad off as people think.
The Rivian HQ parking lot is probably the highest concentration of their cars outside the factory.
They seem to have actively excluded 95% of the US population from any consideration as a market. tariffs on Chinese cars to protect this seems pretty gross
That is another can of worms.Chinese EV production is so subsidized it makes no sense to not tax them,especially if your car industry is a big job generator.
@@naamadossantossilva4736 I would read more about the supposed Chinese EV subsidies if I were you. All electric cars sold in China receive the subsidies, even foreign brands like Tesla and VW. Blaming the success of Chinese EVs on subsidies is sticking your head in the sand; Chinese cars are packing in so much technology for so cheap that they are simply the superior product.
Dropping tariffs on Chinese EVs is very hypocritical and shortsighted. The US government and industry wants free trade when they can dominate the market, but retreat into protectionism as soon as a real threat appears. The tariffs just means the consumer has to buy a more expensive car with less capabilities where the market is captive, but outside of tariffs US cars will simply be unable to compete.
@@rollercoasterintogiantdomo Chinese cars should be allowed if they setup plants in US and open source their AI software for government inspecation. Otherwise US is signing death warrant to its economy. West cannot compete with wages of Indian., Chinese or Mexican workers
@@naamadossantossilva4736what do you think the $7.5k incentive in the US is.. Is that not government support. US EV companies have received billions...as soon as someone else builds a better car cheaper..oh no.. Tariffs. In the longer run, itll make them stronger and US companies less competitive in the global market. History has always proven that to be true. Never fight the natural flow of water.
Accidental Tech Podcast gave me some insight into owning a Rivian, and really any EV. How long it took to get a part, how electric charging can be annoying due to the infrastructure not being there yet, no CarPlay, cabin noise. I’ll be waiting to purchase an EV.
I think cabin noise is good on the gen 1 and great on the gen 2. Don't miss Carplay at all, Rivians software is excellent just like Tesla. Does things like casting almost any app (next update), livestreaming cameras to your phone and more. Haven't needed any major parts but for the minor service I needed, they gave me a Rivian loaner. Also road tripped between Minnesota, New Hamsphire and Tennessee, no problem charging it with the slightest bit of planning. It's really not a challenge at all. I'd never go back to a slow, high maintenance, low tech gas car.
I met a Rivian owner Saturday. He asked me to put air in his tires so he wouldn’t dirty his shirt. There you have it ladies and gentlemen…
I’m an engineer with an above average income. I’m overwhelmed trying to figure out how to buy a house which has doubled in cost to mortgage in 5 year, let alone buy a $80k+ vehicle! No wonder they’re not selling, they’re only for independently wealthy individuals.
Their cars have all the known issues of EVs (limited autonomy, heavy reliance on a lacklustre charging infrastructure, terrible resale value due to the battery wearing out) and only comes at a price that the vast majority of the population simply cannot afford, and at a time of economic uncertainty. I cannot figure out why there may be a lack in demand...
The demand for these vehicles is ridiculously strong. Just because they have an inventory of pre-builds doesn't mean there is not demand. I don't know what the source was for "10,000 unsold vehicles". In addition if there are 10,000 unsold vehicles where is mine that I've been waiting 3 months for along with 3 of my friends? Rivian builds 200+ vehicles per day! The fact they have a month or two of vehicles in their inventory store is a non issue. The only problem with Rivian right now is the supply chain mistake they just announced. This stock is a Long Term Strong Buy for now. Whether profitability comes in Q4 2024 or Q1 2025 it will indeed come and things will only improve from there.
I think you might be a little delusional.
When I was a kid, I used to whistle past the graveyard.
When your business plan is grounded in a dubious theory (catastrophic, human-induced climate change), subsidies, and fashion, market blow back is inevitable.
I love their vehicles. However, you now have a negative feedback loop, people aren’t buying their cars which is causing uncertainty about the future which increases the number of people unwilling to buy their cars.
I believe that would be a positive feedback loop because the initial event (selling fewers cars) is causing a secondary event (people worried about the future of the company) which in turn causes a larger number of the initial event (selling fewer cars). Positive feedback loop is when the event loop causes the events inside to increase in frequency, ie moving away from equilibrium.
@@devilselbow I think you're confusing "positive" as meaning good and "negative" as meaning bad. Positive feedback just means that the event-loop causes events in the loop to increase in frequency, which means there's an increase in change (be it positive or negative). Negative feedback means the events in the loop work against each other and reduce the amount of change in the system (ie negative feedback results in moving towards an equilibrium). For example, think of a supply-demand curve. When an object has a huge increase in demand, the supply goes down and prices would go up due to higher demand. Those higher prices result in lower demand due to less people being able to afford it. This, in turn, lowers demand, which increases supply and lowers the price. Thus the negative feedback loop brings the system back to equilibrium. Regarding your point about the goal to be increasing car sales, the goal is completely independent from whether or not a feedback loop is positive or negative.
@@devilselbow I'm going by the definition of positive and negative feedback loops. Your interpretation just completely ignores that. Even if you want to define equilibrium as not existing (which doesn't matter because it still doesn't change the definition), the mechanism is still a positive feedback loop because the event-loop causes the events in the loop to increase in frequency, which is antithetical to negative feedback loops.
@@devilselbow I'm not arguing semantics, I'm arguing definitions.... Yes a positive feedback loop can result in a negative result if the events in the loop reinforce each other and cause the events to happen more frequently. This is THE DEFINITON of a positive feedback loop. I'm not trying to trick you or anything. You can search this up. Have a nice day though!
@@devilselbow the only person talking about feelings is you because you refuse to use the actual definition of feedback loops so that you could use your made up one 😆. And no, that is not a positive feedback loop "by my own definition." And I'm not using "my own definition.," I'm using the actual definition. It's obvious your critical reading skills are lacking. Go spend the 15 minutes it takes to research this. Like you said, you're wasting your time (but it's because you can't read).
Problem is that really few companies try to come out with an affordable product. They try to come out with the best possible product (and in the case of Rivisn and Lucid apparently they managed) but these products, despite the appeal, are unachievable for the masses. Ford didn’t start his successful business trying to get out the most performing and luxurious car in the world…
Auto industry is a tough biz, EV is saturated for now until infrastructure is built out and Rivian cant compete
Sometimes the optimal strategy is to simply not compete
Also I dont get why folks are buying Teslas. The higher end Teslas also cost 100k and are worst build quality.
@@jaad9848 If you don't understand why people buy Tesla's you're the problem.
There's a lot full of them near my house. Very telling
I don't know who needs to hear this, I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Abby Joseph Cohen. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150,000. If I can do this in a year, anyone can.
I went from no money to lnvest with to busting my A** off on Uber eats for four months to raise about $20k to start trading with Abby Joseph Cohen. I am at $128k right now and LOVING that you have to bring this up here
I know this FA, Abby Joseph Cohen Services but only by her reputation at Goldman Sachs; even though she's now involved in managing portfolios and providing investmnt guidance to clients. I have been trying to get in contact since I watched her interview on WSJ last month
@VernesaGunz Well her name is 'ABBY JOSEPH COHEN SERVICES'. Just research the name. You'd find necessary details to set up an appointment.
@@DelphineBarkleyThank you for this tip. I just looked the name up, wrote to her through her webpage and booked a session..
The thing is people often doubt the prospects of financial advisors like Abby Joseph Cohen in business/markets today. Well it gives me more time to get ahead while they stew in their own pity and doubts as they childishly complain about those spreading the word
Great research and deep dive on the financial status. But are they too big to fail? Too much IP and goodwill to throw away at this point? Be acquired by Amazon? Apple? Or God forbid, VW?
Imagine thinking you can create a new car company from scratch and make it profitable when theres so many big companies already doing it.
Name all the big three-row battery electric SUVs from existing car companies.
@@skierpagewell, when rivian started, zero. Now we have ev9 and, well, maybe the hummer ev suv. Soon, ioniq 9 or whatever, and the Cadillac escalade.
maybe you should create something instead of grandstanding and shaming ppl infinitely more accomplished and successful than you
@@dopewizrd clearly this business is the complete opposite of successful.
@@mr.y.mysterious.video1 i mean even if ceo’s walk away rich lol
Hilarious.
Less than 20% of the population can afford an $85,000 as their daily driver.
Far less than 20% of the public even HAVE conditions that would allow the use of such limited range vehicles.
All this translates into a marketing nightmare.
I'm driving 2 Mercedes Benz I bought used at 10 years of age & about 100k miles.
I paid $5,000 each & have owned them for 8 & 10 years respectively.
Parts are dirt cheap and available quickly from Amazon & other suppliers.
I just LAUGH at the fiction that a RIVIAN is anything other that a Virtue signaling Luxury Good with a precipitous depreciation curve, that is SO impractical that it ONLY has appeal for Rich owners who undoubtedly have other gas or diesel vehicles to make up for the areas in which the RIVIAN falls short.
I put a deposit on the R1S but went with a Model X, so glad I did
I love this company. I’m slowly buying stock when I can. I think it will take off in the next two years.
They can change everything but low demand.
They are in trouble,simply put.
"We lose $33K per vehicle. How do we make money? Volume!"
I absolutely looooove my Rivian. It's such a wonderful EV. I very much hope they survive and keep going. They could easily take over Jeep and other off-road competitors in the EV space.
Fantastic educational video. Thanks!
when you have headlights that look like dyson bladeless fans, you have a problem
Very impressed with your analysis.
All these companies are missing the bigger demographic.. the low to medium middle class. If they where to release a car at a cost of say 30-35k think you see a lot more sell
Look how good Hyundai is doing for example. There's a reason every luxury brand sans Ferrari (which is owned by mega comglomorate Exor) is just a small subsidiary of one of the larger auto makers. You can't survive as a company making ONLY luxury cars cause the market is way too small.