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• AI is driving the market, but not all investors have woken up to ‘The Next Nvidia’. Click here to read more.

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Edited Video Transcript:

[00:00:00] Douglas A. McIntyre: Over at Rivian, the eenie weenie EV company, uh, said that they had a miscommunication with one of their suppliers and that they were revising downward their production figures for this year. Uh, the, the first number, the original number was 57, 000. They now say it will be between. 47 and 49, 000. But this is a company that specializes in losing a billion dollars a quarter.

[00:00:28] Douglas A. McIntyre: Um, my estimates are that in the next quarter, they’ll have. A billion and a half dollars in, uh, in revenue and a billion and a half dollars in losses. So that’s, and I bet you, that’s pretty close. So I want you to tell me, I mean, why did these guys even bother to come to work in the morning?

[00:00:49] Lee Jackson: I don’t know.

[00:00:50] Lee Jackson: And if you’ve ever seen the Rivian design, you know, the whole front end is kind of zany looking. And I don’t know, I think from a, from a car design aspect, I don’t think it’s that great, but I think the thing that was, You know, one of the first hip hops to us was the, the whole thing where they couldn’t deliver the electric vans to, uh, Amazon and, you know, and that was a big order and they were like, yeah, we need to get these electric vans to, but it’s going to be a while because of the same thing they are citing now, which is supply chain issues.

[00:01:27] Douglas A. McIntyre: Well, the thing that I, here’s what would worry me, uh, as an owner. And I think investors should think about this as sort of part of the future of the company. Um, what are you going to do to get these things serviced? If this company is running on. Basically a string and spit, which could happen. Uh, yeah, I think that their problem among other things is, is that how do they service it?

[00:01:56] Douglas A. McIntyre: How do they, you, you can buy one of these, but you get

[00:02:00] Lee Jackson: it serviced in a year. Well, and it’s not like there’s dealerships in every major metropolitan area, to the best of my knowledge.

[00:02:08] Douglas A. McIntyre: No. And I believe that this is a hurdle for anybody who’s thinking of investing in a small ish EV company. One of the hurdles is, is that a buyer is going to look at the question of whether or not they can get the car serviced.

[00:02:23] Douglas A. McIntyre: One of the reasons I think Rivian, Lucid, Fisker can’t grow is when people walk through a dealer or, you know, like Amazon, buy it online and check it out. remote showroom. Yeah, it’s, it’s really, uh, I’m not going to buy one because it can’t get serviced. That to me is a barrier to entry for those companies, which to me is another reason not to buy the stock.

[00:02:51] Lee Jackson: You’re absolutely right, Doug. And it’s one thing if you’re buying a Volt or, you know, a Ford F 150 Lightning, or at least, you know, there’s Ford dealers everywhere and Chevy dealers everywhere, and there’s even you know, tesla dealers e these guys. And like we’v The whole claim from the pro Ribbian crew is that, hey, they got 5 billion coming from Volkswagen.

[00:03:18] Lee Jackson: No, they don’t. They’ve, they’ve had 1 billion invested so far and given Volkswagen’s well covered issues in Germany with the prospect of closing two plants and lack of, uh, demand for EVs. Yeah, I think, I think all three of them that you just mentioned, I think there’s a, there’s a good chance. That at least one is gone by the end of 25 and maybe two.

[00:03:45] Douglas A. McIntyre: They will never see that that additional four billion dollars. You can take my prediction to the bank.

[00:03:52] Lee Jackson: And they’ll probably get an order canceled from from Amazon if they can’t make the deliveries.

[00:03:57] Douglas A. McIntyre: So this is a stock IPO in November, 2021 at 71 bucks on a good day. It trades at 10. And I’m going to give this advice to everybody within earshot.

[00:04:09] Douglas A. McIntyre: You can watch this baby go below five soon.

[00:04:14] Lee Jackson: Yeah, I agree. And it, you know, it’s dead money. Anyway, you look at it, even if they somehow managed to survive, the only bump higher will be a, you know, a short squeeze. That’ll be the only bump. It won’t be a big fundamental reason that you need to own shares now, because things look so much better.

[00:04:33] Douglas A. McIntyre: There’s enough volume in this so that, uh, if somebody’s intrepid, you could short it and quite frankly, I think

[00:04:43] Lee Jackson: it’s a good short. Yeah, I do too. And I, I used to do business with a guy who’s, who’s intriguing guy. And he was always shorting stocks that were sub 10 stocks that had already been hammered. And nine times out of 10, he was right.

[00:04:56] Lee Jackson: They’d go from four to two or three to one. And that could, that could be the case here. I wouldn’t touch it with a 10 foot pole.

[00:05:04] Douglas A. McIntyre: No.

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