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This story that shareholders are suing Rivian for rolling back the price hikes for reservation holders has my brain spinning (RJ Scaringe (Rivian Founder) Is No Longer In The...).

This site exploded last week with understandable anger over the price increases and I genuinely believe the discussions that happened here helped nudge Rivian in its decision to reverse that move. That seemed like a good news story to me. I'm sympathetic to the situation the company is in, but their initial solution was obviously unpalatable to a majority of the folks here who have been waiting (for years in many cases) to take delivery.

But none of that helps Rivian's financial picture (short of saving the company from collapse due to thousands of cancelled orders). So are the shareholders right to sue? I presume the point of the lawsuit isn't so much to get money from the company as it is to try to nudge Rivian towards a course correction that increases revenue, but maybe I'm naïve!

What do you all think?
 

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Big troubles happen to automotive companies when they start listening to their shareholders RATHER than their paying customers. Numerous years at GM were wasted trying to increase stock values all the while selling crappy, undesirable products.
 

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Not to mention how Boeing got into major trouble for trying to raise their stock price at the cost of lowering the quality of their aircraft. The name Boeing used to be synonymous with quality but now their aircraft are looked upon with suspicion.
 

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This story that shareholders are suing Rivian for rolling back the price hikes for reservation holders has my brain spinning (RJ Scaringe (Rivian Founder) Is No Longer In The...).

This site exploded last week with understandable anger over the price increases and I genuinely believe the discussions that happened here helped nudge Rivian in its decision to reverse that move. That seemed like a good news story to me. I'm sympathetic to the situation the company is in, but their initial solution was obviously unpalatable to a majority of the folks here who have been waiting (for years in many cases) to take delivery.

But none of that helps Rivian's financial picture (short of saving the company from collapse due to thousands of cancelled orders). So are the shareholders right to sue? I presume the point of the lawsuit isn't so much to get money from the company as it is to try to nudge Rivian towards a course correction that increases revenue, but maybe I'm naïve!

What do you all think?
It is a delicate balance once you go public.. ideally the goal should be delivering what customers want and having that translate into good returns for shareholders. It is obviously way more complicated than that especially when shareholder and customer interests are in direct conflict. Many of us wannabe customers ( until I have my R1S I'm just a wannabe) are also shareholders and hopefully willing to forgive the missteps for the long term benefit of the company.
 

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Wait ... stockholders asked them to sell crappy, undesirable cars?
The beancounters took control over the product engineers and forced them to cut costs in places where it was obvious to the customer and detrimental to customer perception. I once had a Z06 Corvette, which had some great bones but an interior that Tonka Toy would have been proud of, along w/ many other shortcomings that cost a lot more for me to fix than it would have cost them to do right in the first place.

What the beancounters didn't fully anticipate is excess cost cutting's impact on market share, brand perception/loyalty, and pricing power. Thankfully the product folks seem to have gained more influence in recent years, and their interiors are now much better.
 

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When you go public before you're ready and boost your preorder list by under-pricing your product to get an unrealistically high valuation, you're putting yourself in between a rock and a hard place from the beginning.

This will be a hard hole to dig out from.
 

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This story that shareholders are suing Rivian for rolling back the price hikes for reservation holders has my brain spinning (RJ Scaringe (Rivian Founder) Is No Longer In The...).

This site exploded last week with understandable anger over the price increases and I genuinely believe the discussions that happened here helped nudge Rivian in its decision to reverse that move. That seemed like a good news story to me. I'm sympathetic to the situation the company is in, but their initial solution was obviously unpalatable to a majority of the folks here who have been waiting (for years in many cases) to take delivery.

But none of that helps Rivian's financial picture (short of saving the company from collapse due to thousands of cancelled orders). So are the shareholders right to sue? I presume the point of the lawsuit isn't so much to get money from the company as it is to try to nudge Rivian towards a course correction that increases revenue, but maybe I'm naïve!

What do you all think?
Shares will tank if (when) they lose customers!
 

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I am a shareholder and sad to say ... lost my shirt in this investment and barely hanging on. The more Rivian proves inconsistent, indecisive, breaks promises, and lose consumer/customer confidence, the more my shares look bleak. I regret my investment and similarly, many potential customers (especially those who are on waiting list) will regret as well. Future for Rivian if they keep up their lousy way of doing business is "good-bye" and they'll be bought out by Ford or another big company for a cheap price. They can make EV ... but they just can't make a profit at it.
 

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I am a shareholder and sad to say ... lost my shirt in this investment and barely hanging on. The more Rivian proves inconsistent, indecisive, breaks promises, and lose consumer/customer confidence, the more my shares look bleak. I regret my investment and similarly, many potential customers (especially those who are on waiting list) will regret as well. Future for Rivian if they keep up their lousy way of doing business is "good-bye" and they'll be bought out by Ford or another big company for a cheap price. They can make EV ... but they just can't make a profit at it.
Just sell, take the loss on your taxes and move on if you feel that way....unless of course you are short selling and are just trying to help get the stock to fall with your pessimistic posts. :LOL:
 

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in any corporation.................ANY.........the shareholders matter most. whatever props up the share price matters most. you see, the thing is with corporations the one thing, above all, that matters is predictability. so long as the corporate executives understand their business well enough to be able accurately gauge overs and unders within a very small variance then the share price doesn't suffer. however, SURPRISES are a stock's worst enemy and, unfortunately, Rivian executives have not been able to accurately predict the market, the supply chain woes, inflation, and how all these external factors and variables affect their quarter goals and expectations. when they miss expectations it speaks to the executives and managers who are running the show.....and the share price suffers because we lose faith in management. Rivian's stock price at IPO was severely inflated.....I saw my $70 shares go to $130 and then come down to $18 before crawling back up to the current $32. I blame the executives at Rivian...granted, probably no one could have predicted many of the market's problems....I do believe managers with more experience would have predicted better, adjusted targets better and handled the public perception better..... we should have Rivian shares at $55-60 with better management. but to answer the OP question: shareholders matter more.
 

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I am a shareholder and sad to say ... lost my shirt in this investment and barely hanging on. The more Rivian proves inconsistent, indecisive, breaks promises, and lose consumer/customer confidence, the more my shares look bleak. I regret my investment and similarly, many potential customers (especially those who are on waiting list) will regret as well. Future for Rivian if they keep up their lousy way of doing business is "good-bye" and they'll be bought out by Ford or another big company for a cheap price. They can make EV ... but they just can't make a profit at it.
Do you have money in anything related? Even if its with companies that supply materials?
 

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I would say they have equal weight. You need the customer loyalty to continue selling product, you need to make good business decisions to make the company viable which in time is reflected in the stock price.

If you bought the ISP and sat on them you are in a down position right now. If you bought the ISP and more on the dip to lower your average price you should be close to even now.

The R1S is starting to get in customer hands now, we have seen Rivian reiterate the 25k vehicles this year several times. We have seen the EDVs being shipped and lots of them sitting on the lot in Normal. They should be starting a second shift next month which means supply chain is looking at least more manageable. I think the third quarter should be good for both customers and investors. We should see early November.
 
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