Rivian (RIVN) Automotive

Agree LRH. They look very good going down the road.

Rivian Lost $1.7 Billion in the Third Quarter (Nov 9, 2022)
www.nytimes.com/2022/11/09/business/rivian-third-quarter-earnings.html

Major points:
Sufficient Cash thru 2025
Qtr loss has increased from $1.2
Vehicle Produced is 7,363 up from 4,400
Revenue is up to $536m from $364m
25,000 vehicle yr target will be achieved
Orders are up to 144k from 90k

Here's a clip on their business with Amazon...
jalopnik.com/rivian-has-delivered-over-1-000-electric-vans-to-amazon-1849767298

from CNN...
"In the first three quarters of this year Rivian has built just more than 14,000 vehicles, so hitting the 25,000 production target for the year would mean a 45% increase in production in the final three months of the year over the 7,400 it built in the just completed quarter.

But while it says it remains on target to hit that 25,000 goal for 2022, it pushed back its target date for the availability of its smaller R2 model to 2026. It had previously forecast a 2025 rollout for that model."

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My take - the clock is ticking. The demand from consumer and business partners continues to grow but inching forward on production isn't enough. A second shift is being added. Will it make enough of a difference? Then there is the issue of the next model.  That production is delayed by another year.  This company isn't a sure bet but continues to be one worth watching especially as it's stock was up over 17% today. I'll feel more positive toward the stock when production has been proven at a higher rate.

A move to take out the May 11 low of 19.25 and settle in the lower teens might be a great level to enter a trade.

Have a look at the van Rivian has built for Ama*on:
The Rivian Electric Amazon Delivery Van Is Highly Innovative and Incredibly Cool


All of the custom design also serves to make this product more "sticky" to Rivian.  Another manufacturer will have to come up with something better.  Good luck with that.

Rivian is "Dog Gone" Good  (my observation)

With the sharp decline in SP of Tesla, Rivian and other EVs comes a chorus of "it's just a car company" I Told You SOs.  Many are calling for stock prices to remain low or even drop more claiming being a "car company" doesn't justify PE's more typically assigned to technology firms (well PEs that use to be assigned...).

In my opinion this REALLY misses the point of what the change to EVs offers - and that is a "smarter" driving experience.  Disagree and you may be caught driving with a buggy whip and talking on a "candy bar" cell phone.

The following article from CNBC (I know I know - hardly the deepest source of information) sheds some light on why the Amazon Rivian Van is more than an electric milk cart.

Here are a few of the article highlights....

(1) The Rivian vans have at least 100 more cubic feet than the Sprinter and up to double the cargo space of the Ford Transit vans

(2) There’s also new technology, such as an embedded tablet with the driving route and a 360-degree view that shows all sides of the van

(3) “When we start to notice that you’re slowing down, that means that we can tell you’re getting near to your destination,” she said. “The map begins to zoom in, so you begin to find where’s your delivery location, which building and where parking could be.”

(4) The new vans have keyless entry. They automatically lock when the driver is 15 feet away and unlock as the driver approaches.

(5) Amazon put cameras and sensors all over the Rivian vans, which enable warnings and lane assist technology that autocorrects if the vehicle veers out of the lane.

(6) “The in-vehicle safety technology we have watches for poor safety behaviors like distracted driving, seat belts not being fastened, running stop signs, traffic lights,”   Alerts are triggered for drivers who exhibit patterns of unsafe behavior.

(7) The cabin-facing camera automatically switches off when the ignition is off, and privacy mode means it also turns off if the vehicle is stationary for more than 30 seconds.

(8) Drivers can choose to manually notify customers ahead of a delivery, giving them time to restrain pets. Drivers in the future will be able to mark delivery locations that have pets to reduce dog charging at drivers during deliveries.

(9) The company has been adding a huge amount of detail to driver maps, using information from 16 third-party map vendors as well as machine learning models informed by satellite driver feedback and other sources.

 
To be fair - some of these features are found on my Honda CRV.  That said, the Rivian van is far more advanced than the now routine safety features offered in any ICE car.  Read the article and decide for yourself....

How the job of Amazon delivery has changed with Rivian’s electric vans and routing software