Elon WARNS Rivian & Lucid Headed For Bankruptcy (RIP)

TL;DR

Elon Musk believes that unless drastic changes occur, both Rivian and Lucid are headed for bankruptcy.

Transcript

unless something changes significantly with rivien and lucid they will both go bankrupt they're tracking to bankruptcy like if there's an airplane they're like they're going like that so if something happens to go is change okay but currently the intersection with doom yeah so uh you know i i hope they are able to do something but unless they cut t... Read More

Key Insights

• 😀 Elon Musk's prediction of bankruptcy for Rivian and Lucid highlights the challenges facing EV startups in the automotive industry.
• 🙂 The comments from the value investor shed light on the mindset of some investors and their skepticism towards Tesla's valuation.
• ⛔ The value investor's approach, while cautious, may limit the potential for identifying promising investment opportunities.
• 🧑‍🏭 The volatile nature of the stock market and the influence of narratives and hype on stock prices are significant factors to consider.
• 👨‍🔬 It's important for investors to conduct thorough research and consider the viability and potential risks of EV startups before making investment decisions.
• 🥺 Tesla's established lead in technology, manufacturing, and market presence sets it apart from other automakers and contributes to its unique valuation.

Questions & Answers

Q: Why does Elon Musk believe that Rivian and Lucid are headed for bankruptcy?

Elon Musk suggests that unless there are major changes, such as cutting costs dramatically, both companies will struggle and eventually go bankrupt.

Q: What are the challenges facing EV startups?

EV startups face difficulties in ramping up production and reaching volume production. This is a significant challenge that many startups have yet to overcome.

Q: What are the risks involved in investing in EV startups?

The value investor highlights the risk of bankruptcy and points out that many investors ignore red flags and invest based on hype and narratives rather than solid fundamentals.

Q: What is the value investor's opinion on Tesla's valuation compared to other automakers?

The value investor believes that Tesla's valuation doesn't make sense compared to other automakers. However, this viewpoint may be limited due to a narrow investment style that doesn't consider the unique aspects and potential of Tesla.

Summary & Key Takeaways

• Elon Musk states that unless there are significant changes, Rivian and Lucid will go bankrupt.

• The value investor comments on Tesla and the volatile nature of the stock market.

• The value investor also discusses the challenges facing EV startups and the risks involved in investing in them.