RIVN May Be A $0
To maintain a strong balance sheet, RIVN will need to raise capital next year, if not earlier – Stephen Wilmot, “Rivian’s $6.4 Billion Cash Burn Might Be A Tech Record” [SUBSCRIPTION REQUIRED], WSJ, March 1
7 months ago I wrote a blog about Rivian (RIVN) titled “RIVN Is A Speculation Not An Investment”. The company reported 4Q22 earnings yesterday afternoon and results show that this is still the case. RIVN produced only 24,337 cars in 2022 while burning through $6.4 billion. The company still has $11.6 billion in cash but at the current burn rate that will only last two years. In other words – as Stephen Wilmot of The Wall Street Journal pointed out – RIVN will likely have to raise more money next year. Given the change in the macro climate, it may well be hard to raise as much money as they need – and it will likely be quite expensive. As cool as the trucks may be, RIVN remains a speculation, not an investment. There is a significant probability that this company won’t make it. Shares are down 18% today in response to earnings.