In this video, I will be talking about Rivian (RIVN +1.15%) and whether it could copy Tesla's game plan for success. Elon Musk recently said that Rivian and Lucid will go bankrupt if they don't reduce costs.
- Rivian's production numbers are similar to Tesla's 2013 numbers, but back then Tesla was basically alone in the EV market, which meant it had the supply chain all to itself.
- While Rivian's $17 billion cash pile might buy the company time, it will not solve supply problems.
- Both have different customer bases, and currently, Rivian's vehicles are more expensive than Tesla's Model 3 and Y, so a less expensive model could be next for the company.
- If the electric van is a success, other big companies like UPS and FedEx might order some as well, which would boost the balance sheet for Rivian.
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*Stock prices used were the closing prices of June 14, 2022. The video was published on June 15, 2022.
