A Little Good News for Rivian Investors
Investors in the automotive industry, especially the electric vehicle (EV) industry, are happy to soak up any positive news amid a flurry of price cuts, supply disruptions, and slowing growth. If they've been focusing on the bad news, Rivian Automotive (NASDAQ: RIVN) investors might have missed that the company recently added the R1S to its leasing program, and it might be a bigger deal than they think.
Here's why leasing will be important for Rivian right now, and why adding the SUV specifically is good news.
There are some rules of thumb within the automotive industry. Some are well known, such as that trucks and SUVs are much more profitable than passenger cars. Another rule from the past is that while luxury vehicle sales accounted for between 10% and 20% of the market, they typically generate over one-third of profits -- it varies among brands and manufacturers.
Source Fool.com
