Submitted by maliknyc t3_11a965p in wallstreetbets
aka0007 t1_j9tb6tn wrote
Reply to comment by Southern_Smoke8967 in Rivian Business Strategy Walkthrough - Do they have what it takes to compete against Tesla? by maliknyc
Tesla in 2017 sold 2,685 Model 3's and their FCF that year was -4.1B. In 2018 they sold 152,977 Model 3's and their FCF that year was -221M.
RIVN in 2021 sold 920 r1t's and their FCF was -4.4B... So ah-ha! You must think you are right because look at how close that FCF is... But... through Q3' 2022 with 12,278 vehicles sold their FCF was another -4.7B.
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So to recap from Year 1 of production to Year 2 of production for the Model 3 vs the Truck/SUV Rivian makes:
Tesla 2,685 -> 152,977
Rivian 920 -> 12,278
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FCF for those periods:
Tesla -4.1B -> -221M
Rivian -4.4B -> -4.7B
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If you want to dig deeper into this...
In Q1' 2022 per vehicle sold, Rivian's FCF was -654K
In Q2' 2022 per vehicle sold, their FCF was -206K
In Q3' 2022 per vehicle sold, their FCF was -449K
Not sure scaling is working out here as you think.
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You can chirp on about how Rivian is doing this and that, but the numbers here don't show it. Tesla within a year turned around a cash-burning production process... Rivian has barely scaled up and as of Q3 was still burning cash like crazy. I would not count on next week Tuesday after the close looking pretty.
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