TL;DR
Rivian’s ‘profit’ is an illusion built on credits and unsustainable sales projections, mirroring past financial disasters like the 2008 subprime crisis and Enron’s accounting fraud.
Story
Rivian’s Q4 2024 ‘profit’ is a mirage in the desert of American consumer debt. They claim $170 million gross profit, but gloss over $300 million in credits.‣ Credits: Often government incentives, masking true losses. It’s like boasting about a ‘sale’ when the store paid you to take the item.
Their projected 46k-51k vehicle sales for 2025? A pipe dream. Americans are drowning in $1.2 trillion of credit card debt. Sixty percent live paycheck to paycheck. Who can afford a $90,000+ truck when they’re struggling to buy groceries?
This reeks of 2008. Remember the ’liar loans’?‣ Liar Loans: Mortgages given with no income verification. Now, it’s ‘aspirational sales’—banking on a future that won’t arrive. Don’t be fooled. Rivian’s stock price, up only 2% despite this ‘good news,’ whispers what the bulls ignore: the house of cards is crumbling.
Like Enron’s creative accounting,‣ Creative Accounting: Manipulating financials to appear profitable. this ‘profitability’ is smoke and mirrors. It’s designed to lure investors, not reflect financial health. Look beyond the hype. Follow the money—or lack thereof.
Advice
Don’t be swayed by flashy ‘profit’ announcements. Scrutinize the underlying financials, especially debt and sales projections. If it sounds too good to be true, it probably is.