RJ Hamster
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| Sponsored content from Porter & CompanyYou can feel it, can’t you?Something big just broke…Not the stock market, not the banks… something deeper.The numbers say everything’s fine… but it doesn’t feel fine, does it?The cost of living keeps rising. The divide keeps widening. The anger keeps building.Listen, I’ve spent three decades studying financial systems, and I’ve never seen pressure like this. It’s as if the old order of the economy has cracked and something new is forcing its way through.Most people can’t see it yet. But they sense it. They feel it in their gut.I’ve pulled on that thread for the past year, and what I’ve uncovered is bigger than anything I’ve ever reported. And it’s happening much faster than anyone imagines.I explain everything in my new documentary.➡ Watch it here before it’s too late for you. Good investing,Porter Stansberry Exclusive ContentRivian’s Autonomy Bombshell Changes Everything—Even Its ValuationReported by Jeffrey Neal Johnson. Article Published: 12/15/2025. Article HighlightsRivian is launching proprietary computer chips and a new software platform to reduce vehicle costs while generating high-margin recurring subscription revenue.A major joint venture with Volkswagen, combined with a strong balance sheet, provides the necessary capital to bridge the gap to mass-market production of the upcoming R2.Analysts are upgrading the stock as the company prepares to launch its affordable mass-market vehicle platform, supported by an expanded manufacturing facility.Rivian Automotive (NASDAQ: RIVN) shares jumped 12.1% on Friday, Dec. 12, closing at $18.42. The double-digit rally stands out amid broad unease in the electric vehicle (EV) sector. While many competitors face slowing demand and compressed margins in what has been called an EV winter, Rivian appears to be separating itself from the pack.The catalyst wasn’t a standard delivery update or an earnings beat. Instead, Wall Street is recognizing that Rivian is pivoting from a pure hardware maker to a software-defined technology platform. After the company’s Autonomy & AI Day, investors and analysts re-evaluated the stock. A growing consensus among bulls is that Rivian’s value will come not only from the trucks it sells but from the proprietary technology ecosystem it is building.Analyst Optimism Spikes Following AI DayBest $19 you’ll spend this year. (Ad)A former hedge fund manager known for cutting through market noise is briefly opening access to his flagship trading strategy. In a short demo, he explains how his “One Ticker” approach works — and how readers can access the full service for a year at a steep discount.Watch the brief demo hereRivian’s share price reaction was driven largely by a bullish note from Needham analyst Chris Pierce. Following the presentation, Pierce raised his price target from $14 to $23, implying roughly 25% upside from current trading levels.The upgrade centers on Rivian’s new intellectual property. Needham’s view is that Rivian is creating a competitive moat by developing its own software and hardware stack. Controlling both layers can produce a durable advantage that is harder for competitors to replicate.This shift is prompting some investors to evaluate Rivian more like a technology firm than a traditional automaker. Technology companies typically trade at higher multiples than car manufacturers. If Rivian can demonstrate it is selling high-margin technology on top of vehicles, its valuation could expand.The Vertical Integration Bet: Chips and SubscriptionsTwo major announcements underpin this strategic pivot: the Rivian Autonomy Processor (RAP1) and the Autonomy+ software platform.RAP1 is a proprietary compute chip designed in-house by Rivian engineers. Many automakers buy computing power from third parties such as NVIDIA (NASDAQ: NVDA), which can be costly. By building its own on-board brain, Rivian aims to reduce expensive third-party hardware in the supply chain and lower the Bill of Materials (BOM) cost per vehicle. In the low-margin auto business, unit-cost savings are a fast route to profitability.The strategy isn’t only about cutting costs; it’s about creating recurring revenue. Rivian said Autonomy+ will launch in early 2026 and will offer hands-free highway driving with future point-to-point navigation. The planned pricing structure is:A one-time purchase fee of $2,500.A subscription of $49.99 per month.Investors generally favor Software-as-a-Service (SaaS) models because they deliver predictable, high-margin cash flow. Unlike a one-time vehicle sale, a subscription can generate revenue for the life of the car. If Rivian can convert a meaningful portion of R2 buyers into Autonomy+ subscribers, it would add a lucrative, low-marginal-cost revenue stream.Funding the Future: The Financial BridgeRunning out of cash is a major risk for growing EV companies. Rivian has moved to mitigate that risk with strategic partnerships and improved operations.A key validation of Rivian’s technology is its partnership with the Volkswagen Group (OTCMKTS: VWAGY). The two firms formed a joint venture focused on electrical architecture and software, a deal worth up to $5.8 billion. Rivian received the first $1 billion equity tranche in June 2025. That relationship is already contributing to results: in the third quarter, Rivian’s Software & Services revenue surged 324% year-over-year to $416 million, largely from services provided to the joint venture.Rivian entered the third quarter of 2025 with a stronger balance sheet:Total liquidity: About $7.1 billion in cash, cash equivalents, and short-term investments.DOE loan: Conditional access to a multi-draw term loan facility worth up to $6.6 billion to fund the Georgia facility.Mind Robotics spinout: Rivian spun out an industrial AI unit, raising $110 million in external capital while retaining a significant minority stake (just under 50%).Operational discipline is showing up in the results. In the third quarter of 2025, Rivian reported a positive gross profit of $24 million — a notable turnaround from prior losses. Achieving positive gross profit before the ramp of its mass-market vehicle suggests the company is managing costs effectively and has a capital runway toward the 2026 production ramp.The Destination: R2 and Mass-Market ScaleAll of Rivian’s technology and capital efforts are aimed at one goal: a successful R2 launch. Production of the midsize R2 SUV is scheduled to begin in the first half of 2026 at the company’s Normal, Illinois, plant.The Normal facility has been retooled to increase annual capacity to 215,000 units. The R2, with a starting price near $45,000, targets a much larger market than the higher-priced R1T and R1S. The proprietary RAP1 chip and Autonomy+ software are intended to make the R2 profitable at this lower price point. By lowering technology costs internally, Rivian can offer a more affordable vehicle without sacrificing margins. The R2 is designed to be the volume driver that enables Rivian to capture broader market share.Why Rivian Stands Apart in the EV MarketRivian has differentiated itself from the struggling EV startup narrative by securing a sizeable capital pipeline through Volkswagen and conditional DOE financing, and by validating its technology with in-house silicon and software. Those moves have de-risked parts of its path to 2026.The Needham upgrade reflects growing Wall Street belief that Rivian’s current valuation may not fully capture its potential as a software-defined technology leader. If the company executes on the R2 launch and drives adoption of the Autonomy+ subscription, the stock could have further upside. |
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