It is not the preorders that is going to bite Rivian in the ass........
This may be the fall of Rivian. The Humpy Dumpty that can not be put back together.
Rivian was Wall Street's favorite electrical vehicle start-up. A great product for the adventure market at a good price offering that would spill over into the SUV market. They were innovative with a skateboard that different car form factors (T&S) were placed on. This allowed mass production of the skateboard. They replaced hardware, slip differential, axel with a motor at each wheel, and software.
Now, none of this is true. They can not deliver the cars at the price point, no longer have the large market segment due to the price point, and seems to have abandoned the skateboard to be a me-to, of the dual motor.
So did Rivian know about this Pre-IPO, four months ago? You have to assume they did. Did they mislead shareholders by not disclosing this on the IPO? Clearly, they did.
Now start the SEC investigation, shareholder class actions. I am sure there are law firms smiling this morning.
How could Rivian be so stupid? They raised so much funding with the IPO this could have been handled differently.
Is it time to short Rivian? Let's not forget what happened to Shorts with Tesla. Amazon owns 25%, which may be a risky move.
I have a T & S on order and am a shareholder. I am saddened by what I believed was a great company. I will be filing a grievance with the SEC.
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