Would you loan $7 billion to Rivian, to keep building their ginormous electric pickups that nobody wants? Surprise . . . you already did.
![](https://photos1.similarworlds.com/00/00/00/00/04/07/40/78/SusanInFlorida-NXxSXmV8pOwATeW.jpg)
Photo above - Rivian sold only 13,000 vehicles last year. 1,000 a month. This one got stuck in the snow, just like a Cybertruck.
The S&P 500 index has soared 28% (so far) in 2024. If you bought automaker’s Rivian stock this year, that’s about the percentage you’d have LOST - down 29%!
The reason is simple. Rivian makes no money. It was founded in 2009, went public in 2021, and has lost money every year. They are projecting approximately $1 BILLION loss this year. Venture capitalists have pulled the plug. Investment pros recommend selling the stock. Banks won’t lend them any more money.
Wait . . . the government is here, and they want to help.
How does a $6.6 billion loan sound? Since the entire Rivian company is only worth $12 billion, a $6.6 billion loan looks like a gift from the gods, no?
How many trucks does Rivian sell? About 1,000 per month. (2023 figures).
Why so few? Well, to lease an R1T you should be prepared to fork over $999 per month. For this you don’t even get Android Auto. However, you WILL get the second worst mpg-E of any vehicle made in the USA. The only thing worse is the GM electric Hummer. Where can you buy a Rivian? Maybe there’s a kiosk at the mall. There certainly aren’t any dealerships.
So would you lend this company $7 billion, and pray that they someday make money?
3 years ago (2021) Rivian was worth more than Volkswagen, Ford, and GM. Because of hype, of course. The company's value has dropped 90% from the peak.
Politicians are always picking winners and losers with “free” government money. Why they would attempt to save Rivian from sinking out of sight at the 11th hour is a mystery. Rivian isn’t even a UAW union shop. Somebody at Rivian must know somebody at the White House. What are the odds of Rivian NOT filing bankruptcy? You can google that for yourself to find out. Opinions vary. However, somebody at the White House didn’t even google, and just threw them a $7 Billion lifeline with our money.
Hey – Musk and Ramaswamy – I just found something else you can cut from the Federal budget.
I’m just sayin’ . . .
Vivek Ramaswamy Is Mad About Rivian's Georgia Factory Because He Doesn't Know How Loans Work