BillionaireClubCollc
  • News
  • Notifications
  • Shop
  • Cart
  • Media
  • Advertise with Us
  • Profile
  • Groups
  • Games
  • My Story
  • Chat
  • Contact Us
home shop notifications more
Signin
  •  Profile
  •  Sign Out
Skip to content

Billionaire Club Co LLC

Believe It and You Will Achieve It

Primary Menu
  • Home
  • Politics
  • TSR
  • Anime
  • Michael Jordan vs.Lebron James
  • Crypto
  • Soccer
  • Dating
  • Airplanes
  • Forex
  • Tax
  • New Movies Coming Soon
  • Games
  • CRYPTO INSURANCE
  • Sport
  • MEMES
  • K-POP
  • AI
  • The Bahamas
  • Digital NoMad
  • Joke of the Day
  • RapVerse
  • Stocks
  • SPORTS BETTING
  • Glamour
  • Beauty
  • Travel
  • Celebrity Net Worth
  • TMZ
  • Lotto
  • COVD-19
  • Fitness
  • The Bible is REAL
  • OutDoor Activity
  • Lifestyle
  • Culture
  • Boxing
  • Food
  • LGBTQ
  • Poetry
  • Music
  • Misc
  • Open Source
  • NASA
  • Science
  • Natural & Holstict Med
  • Gardening
  • DYI
  • History
  • Art
  • Education
  • Pets
  • Aliens
  • Astrology
  • Farming and LiveStock
  • LAW
  • Fast & Furious
  • Fishing & Hunting
  • Health
  • Credit Repair
  • Grants
  • All things legal
  • Reality TV
  • Africa Today
  • China Today
  • "DUMB SHIT.."
  • CRYPTO INSURANCE

1 No-Brainer EV Stock to Buy Right Now for Less Than $200

Owning Rivian (NASDAQ: RIVN) stock is not for the faint of heart, even after a recent $5 billion cash infusion from Volkswagen (OTC: VWAGY). But if you are a more aggressive investor, that cash lifeline could be exactly what Rivian needs to create a profitable business.
The future for this stock looks far brighter now than it did before the Volkswagen agreement -- and it still trades for well below $200 a share, even after a big stock rally. Here's why this electric vehicle (EV) stock might be a great buy right now if you have $200 available to invest.
What has Rivian accomplished?
It is important to give Rivian the credit it deserves, despite the fact that the business continues to bleed red ink. Losses in startups aren't shocking at all, given the magnitude of trying to build an electric carmaker from the ground up. That said, Rivian makes highly desirable EV trucks. They have won multiple industry awards, which suggests that Rivian's products are good.

Image source: Rivian.

More important than the awards, Rivian has started to produce at scale. In 2023, it made roughly 57,000 vehicles. That's a large number and proves that the company can execute on a plan.
In 2024, the plan shifted gears from ramping up production to turning a profit on each vehicle it builds. The new direction included cutting costs, upgrading its manufacturing processes, and switching to new suppliers.
The effort to upgrade the company's production processes was a near-term headwind and helped lead to a loss of nearly $39,000 on every vehicle it sold in the first quarter of 2024. That's not great, but it was a necessary step as the company works toward turning a gross profit on each vehicle by the end of 2024. That's not the same as being profitable at the company level, but it is the next step toward that goal.
Put simply, management is doing a decent job of achieving the goals it is setting out for itself, and that is moving the company slowly toward being a sustainably profitable venture.
Solving a big problem with Volkswagen's money
The race for Rivian has long been between time and money. To put a figure on that, the cash and marketable securities listed on the company's balance sheet fell roughly $1.5 billion in the first quarter to roughly $7.8 billion. Although you have to take into account the capital spending in the quarter on the plant upgrade, cash was getting increasingly tight.
That's where Volkswagen comes in, as it just offered Rivian a lifeline. The complete deal is for up to $5 billion in cash. The first part of that comes in the form of a convertible note. The rest is related to a proposed joint venture between the two companies.
The first cash from the joint venture agreement is going to be a $1 billion purchase of Rivian stock in 2025. Another $1 billion purchase is set to take place in 2026. The remaining $2 billion will take the form of an investment in the joint venture and another loan, which will be made available in 2026.
Rivian will still be burning through cash as it builds out its business, but now it has cash coming in to replace what it spends, as well as a large, established partner in the auto sector. Assuming things go as planned, as there are still issues to iron out and regulatory approvals to get, working with Volkswagen could, at some point, dramatically improve Rivian's financial position and maybe even its ability to distribute its products.
The future has brightened for Rivian
Rivian shares rallied dramatically on news of the Volkswagen agreement, which shouldn't be a big surprise. It is still only appropriate for aggressive investors, but if that's the camp you fall into, well, Rivian has secured an important financial lifeline and an important partner. That materially increases the likelihood that Rivian succeeds in its goal of becoming a profitable EV maker.
If you don't want to buy the stock on this news, that's understandable. The two companies still need to work out the final details. But keep an eye on the company. A modest gross profit in the fourth quarter of the year is the next big milestone, and that could be what ends up convincing you to climb on board.Should you invest $1,000 in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $757,001!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
See the 10 stocks »
*Stock Advisor returns as of June 24, 2024Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Volkswagen Ag. The Motley Fool has a disclosure policy.

Welcome to Billionaire Club Co LLC, your gateway to a brand-new social media experience! Sign up today and dive into over 10,000 fresh daily articles and videos curated just for your enjoyment. Enjoy the ad free experience, unlimited content interactions, and get that coveted blue check verification—all for just $1 a month!

Source link

Share
What's your thought on the article, write a comment
0 Comments
×

Sign In to perform this Activity

Sign in
×

Account Frozen

Your account is frozen. You can still view content but cannot interact with it.

Please go to your settings to update your account status.

Open Profile Settings

Ads

  • Billionaire128 Liquid Gold Drawstring bag

    $ 22.50
  • Billionaire128 Liquid Gold Series Neck Gaiter

    $ 16.50
  • Billionaire128 Liquid Gold Flag

    $ 25.00
  • News Social

    • Facebook
    • Twitter
    • Facebook
    • Twitter
    Copyright © 2024 Billionaire Club Co LLC. All rights reserved