One headline really took over the EV news cycle this week. Tim Cook, CEO of Apple (AAPL), got into a Rivian (RIVN) R1T after a conference among billionaire investors. Luke is bullish on Rivian but thinks that this event – or, rather, nonevent — was overblown by the media.
Ultimately, it doesn’t matter what kind of EV Tim Cook got into. It’s just good news that it was an EV at all. When it comes to Rivian, though, its business is rightsizing. Both production and manufacturing are hitting their targets.
And the company is also firing some people. While this doesn’t sound like good news, this will actually help the company to grow strategically and execute upon hitting delivery targets.
And indeed, business aside, Rivian has created a really sleek, cool-looking car and pickup truck. The tech is sound, and the vehicles have great performance at a good price point.
And after its launch, its seven-seater SUV is set to be the premier electric SUV on the market.
The company is set up well for two reasons. Firstly, it has $17 billion on the balance sheet. In the EV market, capital is everything. You need money to attract top talent and build new cars, facilities, and labs.
Secondly, it’s backed by Amazon (AMZN). Amazon, one of the largest van-buyers in the world, placed a huge order for Rivian delivery vans.
In sum, Rivian is well-capitalized in a position of strength. If this Tim Cook-R1T news story showed us anything, it’s that interest in Rivian is buzzing across the internet. And that’s a great sign for the future of the EV company.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.