Buy Hold Rant
Rivian and Tesla's full stack EV advantage
11/6/2025, 6:05:55 AM
Economic Summary
- Full-stack EV strategy (RIVN, TSLA) including software, hardware, batteries, and charging networks enables continual product improvement via OTA updates, differentiating these firms from traditional automakers and potentially preserving resale value and customer satisfaction.
- Vertical integration at Rivian — in-house electronics, battery tech, charging, and sales/service — reduces reliance on third parties, can improve margins, speed innovation, and create licensing opportunities, evidenced by a joint venture with Volkswagen (VWAGY).
- Direct-to-consumer distribution gives Rivian control over pricing and customer experience, but faces legal and regulatory risks in jurisdictions that limit or ban direct sales, which could constrain expansion or require alternative channels.
Bullish
- Rivian and Tesla operate full-stack EV platforms with over-the-air updates, meaning vehicles can improve post-sale and maintain value better than traditional cars.
- Rivian builds its own specialized electronics, battery technology, charging network, and sales/service infrastructure, giving it control of the supply chain and potential margin advantages.
- Rivian licensing its software and hardware to large automakers (e.g., Volkswagen) and forming a JV suggests a revenue stream beyond vehicle sales and industry validation.
- Direct-to-consumer sales and service allows Rivian to capture retail margins and customer data, but faces regulatory/legal risk in some U.S. states.
Bearish
No bearish cases captured.
Bullish tickers
RIVNTSLAVWAGY
RIVN
Bullish
Full-stack EV maker with OTA updates, in-house electronics and batteries, charging network, DTC sales, and VW partnership/licensing potential.
TSLA
Bullish
Pioneer full-stack EV company with OTA software-first approach that sets industry standards for continual vehicle improvement.
VWAGY
Bullish
Volkswagen's JV/licensing with Rivian signals demand for Rivian's software and hardware platforms and validates their technology.