EV Automaker Hailed As The ‘Next Tesla’ Is Hemorrhaging Cash And Investors

[SVPete]

EV Automaker Hailed As The ‘Next Tesla’ Is Hemorrhaging Cash And Investors

https://dailycaller.com/2022/05/09/rivian-automotive-stock-electric-vehicles-tesla/

Start-up electric vehicle (EV) maker Rivian Automotive’s stock plummeted to fresh lows Monday as investors abandon the company once thought to be the “next Tesla.”

Rivian’s stock price fell 18.72% to $23.40 per share on Monday, a whopping 87% decline from its November peak of $179.47 a share, according to market data. The company reported a net loss of $2.5 billion in the final three months of 2021 and said in March that it would produce 25,000 vehicles in 2022, half of the number it originally projected.

“As we continue to ramp-up our manufacturing facility, manage supply chain challenges, face continued inflationary pressures, and minimize price increases to customers in the near term, we expect to recognize negative gross margins throughout 2022,” the company said in its March letter to shareholders.

I've seen a few Rivian "pick-up trucks". They look more froufrou than practical, but Silicon Valley has more than the average share of Gadgetarians.

[Drafe Hoblin]

'Managing supply-chain challenges'... ?

Tesla is 'managing supply-chain challenges'.  You can't even thumb-a-ride on a mule-team.

[FlaGator]

EV Automaker Hailed As The ‘Next Tesla’ Is Hemorrhaging Cash And Investors

https://dailycaller.com/2022/05/09/rivian-automotive-stock-electric-vehicles-tesla/

I've seen a few Rivian "pick-up trucks". They're more froufrou than practical, but Silicon Valley has more than the average share of Gadgetarians.

They also start at $68,000 but one with all the standard stuff you'd want in a normal truck will up the price to over $100,000.

[SVPete]

'Managing supply-chain challenges'... ?

Tesla is 'managing supply-chain challenges'.  You can't even thumb-a-ride on a mule-team.

Modern cars are basically computer controlled, with loads of sensor connections. EVs will be as much or more so, so as to control capacity usage and manage charging (as well as other functions in common with conventional cars). Big Car creates a critical mass that hurts EV manufacturers in two ways:

* Big Car caused the creation of microcontrollers (the "computer") whose functions and capabilities suit the requirements of gasoline engines and emissions systems; EVs have different functional requirements and very different microcontrollers are needed;

* Big Car has the volume and purchasing power to get what they need from semiconductor companies; EV manufacturers get left-over capacity, if there is any to spare, which, currently, there is not.

[SVPete]

They also start at $68,000 but one with all the standard stuff you'd want in a normal truck will up the price to over $100,000.

One could probably get 2 regular pick-ups for that $100K or maybe a bit more.

[Eupher]

Never heard of this company, which is just as well. I'm not at all convinced that electric vehicles are any kind of "wave of the future" unless it's a wave right into the poor house. The battery issue alone is a deal-breaker.

YMMV.