Ross Gerber, the president and CEO of Gerber Kawasaki Wealth and Investment Management and a Tesla Inc bull and investor, on Wednesday expressed optimism for the future of California-based EV company Rivian Automotive Inc RIVN, contrary to the opinions of Tesla CEO Elon Musk.
What Happened: "I think Rivian’s going to make it. They just need a tremendous amount of capital, and that's why the stock is down. But the brand is an excellent brand and people love it,” Gerber said in an interview with Schwab Network.
However, Ross is not as optimistic for all other EV startups. “Rivian’s got a future and I think Polestar’s got a future but I think many of the other startups aren’t going to make it because do not have the financing.”
Should You Invest: Gerber, however, is not sure one should invest in Rivian at the moment. “There is a difference between the product and the financials of the company,” Gerber said while adding that any company that loses capital must raise more. “There really is no upside on Rivian stock until they start raising money which they are claiming will be hopefully in the next year,” Gerber said. “That said, I think Rivian is a company to watch.”
Gerber ordered himself an R1S SUV to replace his Tesla Model Y last year in response to Musk‘s support for a post on X that accused Jewish communities of promoting hatred against whites. Musk later apologized for the post, but Gerber took delivery for the Rivian vehicle in December.
On receiving the vehicle Gerber said that the vehicle from Rivian is a ‘wonderful EV.' The tech needs some work as compared to a Tesla, he said, while adding that Tesla has a huge tech moat. However, high-end EV buyers are buying Rivian in Los Angeles, he said.
Rivian's Shape: Rivian reported a total revenue of $1.3 billion for the fourth quarter and a net loss of $1.52 billion. The company ended the quarter with $9.37 billion in cash and cash equivalents, with a total liquidity of $10.47 billion, including an asset-based revolving credit facility.
The EV maker lost nearly $43,372 per vehicle delivered in the fourth quarter — up from nearly $31,000 in the previous quarter but significantly down from the $124,000 during the same period in 2022.
Earlier this month, Musk said that Rivian's current trajectory “looks like it is gearing up for bankruptcy in about six quarters.” While acknowledging Rivian's decent product design, Musk emphasized the challenges of achieving volume production and positive cash flow in the automotive industry.
Photo by Jarlat Maletych on Shutterstock
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