You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Rivian's business model has become problematic because the company can't scale production effectively.
The electric vehicle (EV) market isn't growing like it was a few years ago, but that's not the only headwind Rivian (RIVN -4.95%) is facing. The company has a cost structure that's out of line with its production and will need to turn to the market for cash before the R2 launches. In this video, Travis Hoium shows Rivian's financial challenge today.
*Stock prices used were end-of-day prices of Sept. 16, 2024. The video was published on Sept. 16, 2024.
Travis Hoium has positions in General Motors. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
