ALB - Rivian Could Be Facing An Existential Crisis

2024-04-10 05:55:47 ET

Summary

• Rivian Automotive's shares have plummeted due to slowing adoption rates in the electric vehicle market and fundamental issues.
• The company is facing challenges such as high production costs and undercapitalization.
• RIVN is the 7th largest player in the US electric vehicle market, with only 4.3% market share, but that won't insulate it moving forward.
• Given how the industry is evolving, the company has little real chance of surviving in the long run.

Ever since I learned about investing back in 2008, I have considered myself to be a value investor. However, I also have a big contrarian streak in my ideology. In many cases, these two investment philosophies go hand in hand. But every so often, they will disagree with one another on what constitutes an attractive opportunity. As and the example, we need only look at what's going on in the electric vehicle market. Shares of companies in this space have been decimated for the most part. This is because adoption rates are slowing....

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