In reply to Keith Tanner :
True. I remember reading bits from investment advisors who were absolutely convinced Tesla was going to collapse "in just a few months..." due to the massive cash burn vs. income. Most recommended shorting the stock. Then the Model 3 dropped and then the Model Y. It seems like Rivian is at a similar point right now, although I'll admit market conditions are different now than when Tesla was on the rise.
Ian F (Forum Supporter) said:In reply to Keith Tanner :
True. I remember reading bits from investment advisors who were absolutely convinced Tesla was going to collapse "in just a few months..." due to the massive cash burn vs. income. Most recommended shorting the stock. Then the Model 3 dropped and then the Model Y. It seems like Rivian is at a similar point right now, although I'll admit market conditions are different now than when Tesla was on the rise.
Tesla had the early adopter advantage. There are a lot more EVs nowadays available to us.
Tesla also took some huge risks. If you read about it, both Tesla and SpceX were in imminent danger to the point where only one was likely to survive the next few weeks. Then SpaceX won the resupply contract to the ISS and they pulled through. It was close. "Liftoff" has the details.
Tesla had first mover advantage, but they also had to effectively create the market. There's a much, much bigger EV market now than there was when they had their crisis moment. I'm hoping a compelling product strategy will attract enough investment in Rivian to let them squeeze through.
In reply to Keith Tanner :
Investment has slowed. They are now raising capital through debt.
In reply to Ian F (Forum Supporter) :
Yup. The smart money guys said basically the same thing about a little company called Amazon a number of years ago.
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