Rivian has ~$4 billion in annual operating expenses
To put $Rivian Automotive, Inc.(RIVN)$ 's profit challenge into perspective, the company has ~$4 billion in annual operating expenses.
If it reaches 400,000 units of capacity in ~2027, as hoped, it would need to make $10,000 in gross profit PER VEHICLE to have breakeven operations.
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My $10k number doesn’t say anything about gross costs.
It only says that’s the gross profit needed on each vehicle AFTER Georgia opens simply to cover opex.
May be possible with a $70k vehicle, but Rivian is going down market. The margin in % terms needs to be ~25%.
https://x.com/TravisHoium/status/1838655814514409534
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