Rivian Just Smashed into the Curb And Lost it’s Sugar Daddy (Buyers BEWARE)

Rivian just hit yet another pothole on its rocky road to taking down Tesla, and this isn’t some minor “oopsie.” It’s more like when my wife floored it into the curb, blew out the tire, and left me stranded on the side of the road, wondering if I should just set up a direct deposit with the Michelin man for all the replacements I’m gonna need.

This morning, Rivian announced that they’re hitting the pause button on the production of their commercial delivery vans. 

You know, the ones Amazon ordered 100,000 of? Yeah, those. The reason? They’re running out of parts. Now, I’m no logistics expert, but I’m pretty sure “having parts” is kind of important when you’re trying to build, well, anything.

For those of you who missed it, Amazon (AMZN) is Rivian’s sugar daddy in this scenario, holding a 16% stake in the company. Last year alone, sales to Amazon made up 19% of Rivian’s revenue. Considering Rivian’s sales last year were $4.4 billion, well you can do the math on how much moolah they’re going to lose if they don’t get this figured out pronto.

Of course, Rivian's spokesperson tried to downplay the issue, saying that the part shortage is "temporary" and that they "expect to recover all missed production." But let’s be real here—this is just another log on the fire that’s been burning Rivian’s hopes to the ground. 

The company has been wrestling with supply chain demons for over two years now, and just when you think they’re finally gone, boom! Another surprise appearance.

Now, if you’ve been investing betting on EV stocks lately, you’re probably familiar with the heartbreak that comes with watching your portfolio bleed red. Rivian’s stock is down 23% in the last month, and it’s been on a slippery slope ever since its latest quarterly earnings. No surprise there. The earnings report was like getting socks and underwear for Christmas—it could be worse, but also not what you were hoping for.

Revenue came in at $1.2 billion, which sounds nice until you realize it’s just meeting expectations. And then there’s the net losses per share, which came in at $1.25. Wall Street was expecting something slightly better, but nope, Rivian decided to spike everyone's anxiety with wider-than-expected losses.

So, where does that leave us? Well, Rivian’s future looks about as hopeful as my redneck buddy’s chances of getting into Harvard—let’s just say it’s a long shot. Their aggressive valuation is making even the most optimistic investors second-guess their life choices. But hey, at least they’re not Lucid (LCID), right? Rivian hasn’t gone full Titanic just yet, but the iceberg is definitely in sight.

(Source: Carscoops)

There’s still hope, though, that Rivian might make a comeback—just not anytime soon. They’ve got plans for an R2 vehicle platform, which could be a game-changer when it rolls out in 2026 (or 2062). But until then, it’s going to be a lot of waiting and watching. And let’s be honest, the only thing more painful than watching paint dry is watching an EV stock slowly bleed out.

So, what’s the takeaway here? Simple: unless you’ve got a weird hobby of being stranded on the side of the road, steer clear of Rivian stock for now. Trust me, waiting for it to bounce back is like waiting for a tow truck in the middle of nowhere—it’s gonna take a while, and you’ll probably lose your sanity in the process.

Stock.News has positions in Tesla and Amazon.