Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside
Speaker 1: my co host Matt Miller. Every business day we bring
Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast
Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and
Speaker 1: at Bloomberg dot com slash podcast. I want to bring
Speaker 1: on Veronica Willis. She's a vice president investment strategy analysts
Speaker 1: at the Wells Fargo Investment Institute. Franca, I'm guessing you're
Speaker 1: having some I guess interesting calls with your clients here
Speaker 1: as these markets sell off here and uh during this
Speaker 1: first four and a half months of two gives a
Speaker 1: sense of kind of what your clients are asking you
Speaker 1: and maybe wait, wait what you're telling them? Absolutely, you're right.
Speaker 1: We get calls all the time really concerned about inflation.
Speaker 1: Have we seen the peak in inflation? What are we
Speaker 1: expecting to happen with inflation? And then also, you know,
Speaker 1: what should I do as a client when fox are
Speaker 1: down and bonds are down together? Where can I go?
Speaker 1: And so I'll kind of start off with looking at inflation.
Speaker 1: It might be a little bit too early to tell
Speaker 1: whether or not inflation is peeped. With cp I we
Speaker 1: saw a little bit of a slowdown from the previous month.
Speaker 1: The same with p p I, but both a little
Speaker 1: bit higher than what analysts were expecting, and so that's
Speaker 1: something we really want to watch really closely with those increases,
Speaker 1: especially in the services areas where inflation might be a
Speaker 1: little stickier than many of us expected. And so inflation
Speaker 1: is something we're watching closely over the next eighteen months.
Speaker 1: We think inflation can remain um above those long term
Speaker 1: averages through three before sort of returning to more normalized level.
Speaker 1: That's next year, Paul, I know where we're thinking about.
Speaker 1: We're thinking about next year, and you know, we really
Speaker 1: want to try the guy our clients to that longer
Speaker 1: term perspective, especially if they're in longer term plans, to
Speaker 1: not make rash decisions because of the short term volatility
Speaker 1: and to really stick to that long term plan. Well,
Speaker 1: recently in our vice, our allocation advice, we've brought a
Speaker 1: little bit more neutral with our stocks. If you have
Speaker 1: if you have a longer term perspective Veronica um and
Speaker 1: you're worried about inflation that far out do you, you know,
Speaker 1: start getting into stocks now, assuming you just hold out
Speaker 1: or start adding to your position now if you've already
Speaker 1: got it just because you have a longer term position. Okay,
Speaker 1: we've taken a lot of pain, but and and there
Speaker 1: may be more to come. Um, but do you think
Speaker 1: stocks are a good way to head against inflation? Absolutely,
Speaker 1: That's exactly what we've been telling our clients. If you've
Speaker 1: got a targeted allocation to your equities, you want to
Speaker 1: make sure that you are moving back into equities during
Speaker 1: these down terms. If you're a long term investor, you
Speaker 1: really want to make sure that you've got that allocation
Speaker 1: set up the way that you intended it so that
Speaker 1: when markets start to recover, you're able to recover quickly
Speaker 1: and not be over allocated in the less risky areas
Speaker 1: like bonds. And it's hard to weather that short term volatility,
Speaker 1: but if you're thinking out to that long term, you've
Speaker 1: got to keep that perspective and make sure that that
Speaker 1: allocation is set up so that you can, you know,
Speaker 1: recover quickly when markets eventually upswing right and Veronica, what's
Speaker 1: the Wells Fargo economic call? Are you guys calling for
Speaker 1: a recession? Because I'm sure you know a lot of
Speaker 1: folks are concerned that maybe this federal reserve may go
Speaker 1: a little too fast, too quickly, and in fact push
Speaker 1: this economy into a recession. What do you guys think
Speaker 1: about that? Here in the US, we are expecting economic
Speaker 1: growth this year um and economic growth next year, but
Speaker 1: at lower levels than what we were expecting before. So
Speaker 1: our base case is slowing economic growth, but we're acknowledging
Speaker 1: that the risks of the recession are rising. It's something
Speaker 1: that we're watching very closely, especially looking at the consumer
Speaker 1: spending data. That's something we'll be watching very closely. We've
Speaker 1: seen weakening consumer sentiment not yet spill over into weakening
Speaker 1: weaker consumer spending, but that's something that we're keeping a
Speaker 1: close eye on because that's a huge driver for the U.
Speaker 1: S economy. What do you think about the moves that
Speaker 1: we've seen in crypto? How much does it matter to
Speaker 1: you know, real investors, to to your clients, um, because
Speaker 1: they're making huge headlines and it's like watching a train
Speaker 1: wreck here in slow motion, but we're not seeing much
Speaker 1: contagion into the you know, playing vanilla uh financial assets
Speaker 1: right now, we don't have any kind of recommended allocations
Speaker 1: in crypto, and so we kind of guide our investors towards,
Speaker 1: you know, a stock bond and then if you've got
Speaker 1: exposure in real assets you like um commodities right now
Speaker 1: in the longer term perspective, and so that's sort of
Speaker 1: where we're kind of guiding our clients towards those types
Speaker 1: of assets as opposed to something like crypto. N I
Speaker 1: guess a lot of folks are saying, you know, stagflation
Speaker 1: is probably the bigger risk than recession. And you know,
Speaker 1: so we got you got inflation, which we do. You
Speaker 1: have slowing growth with which we do. Is that something
Speaker 1: that you're talking to your clients about. It's it's a
Speaker 1: question we've gotten sometimes just what will you know the
Speaker 1: slow growth and this higher inflation. Mean, we do recognize
Speaker 1: that inflation should remain higher than are those longer term
Speaker 1: averages in the near term, but we are expecting it
Speaker 1: to slow. So it's a risk, but it's not our
Speaker 1: our basic case, it's not our base risk that we're
Speaker 1: seeing right now. We're a little bit more concerned about
Speaker 1: the flowing and economic growth. All right, ron Kay, thank
Speaker 1: you so much for joining us. Appreciate getting your thoughts
Speaker 1: here on these markets. Ronica willis investment strategy analyst at
Speaker 1: Wells Fargo Investment Institute. Check out with Robert Teater, head
Speaker 1: of Investment Policy and Strategy Group at Silver Crest Asset Management. Robert,
Speaker 1: you know in the wall of worry that is out there,
Speaker 1: there are increasing number of bricks here, most recently, I guess,
Speaker 1: geopolitical risk. Are there any positive science out there that
Speaker 1: might support this market at some point? I think that's
Speaker 1: a great question. There are a massive number of bricks
Speaker 1: in that wall of worry. I think most of them
Speaker 1: have been reasonably well factored into the market here. In
Speaker 1: other words, they're pretty well known. But I think the
Speaker 1: most important item to crack some of this downside momentum
Speaker 1: is is solving some of those problems and solving some
Speaker 1: of those bricks. And the and the most important of
Speaker 1: all the bricks, of course, is inflation. And so that's
Speaker 1: where we take a bit of a deeper. I've and say,
Speaker 1: you know, what's going on with these metrics and inflation,
Speaker 1: and are we starting to see some glimmers of hope?
Speaker 1: And I think we are, and so hopefully that will
Speaker 1: start to be reflected going forward in prices. Where are
Speaker 1: you seeing glimmers of hope? Yes, there there aren't a lot.
Speaker 1: So from the very beginning of the inflation problem, we've
Speaker 1: asked ourselves three questions, which is inflation, is its spiking,
Speaker 1: is it's spreading, and is it's sticking around? Clearly, it's
Speaker 1: been sticking around for a long time. It has spiked
Speaker 1: quite a bit, although perhaps it's starting to slow a
Speaker 1: little bit as the month over month eatings have come
Speaker 1: in just a little bit lighter than prior months. And
Speaker 1: then to the question of is it's spreading, We've done
Speaker 1: some analysis around all the categories within c p I,
Speaker 1: looking at where they sit versus their three year pre
Speaker 1: COVID average, and we've seen a slight decline in the
Speaker 1: number of categories that are showing inflation above that prior
Speaker 1: historical average. It's only slight, so you know, there's still
Speaker 1: seventy categories above the three year average, but that's down
Speaker 1: from in prior months. So we'll see if this trend
Speaker 1: continues a little bit for inflation at least perhapsing and
Speaker 1: maybe easing a little bit in coming months. Robert, are
Speaker 1: you are you in the camp that believes that the
Speaker 1: federal reserve can materially rain in inflation. I'm not sure
Speaker 1: i am, because it just feels like it's so much
Speaker 1: more supply side driven to the all the supply chain
Speaker 1: challenges that have developed over the actual economy. Though, Yeah,
Speaker 1: that'll do it, but that's not we're looking for. How
Speaker 1: do you think about the FEDS ability, Robert to to
Speaker 1: kind of get a handle on inflation, right that and
Speaker 1: that is the blunt tool instrument, and I think that's
Speaker 1: partially what investors are starting to worry about here. Like you,
Speaker 1: I share the view that inflation is a pretty complex
Speaker 1: problem here. A lot of it is related to supply
Speaker 1: chains and whack the mole problems and a lot of
Speaker 1: different things going on um Clearly, one area though, where
Speaker 1: the rate hikes transmit pretty quickly is in the fact
Speaker 1: that you know, we've seen rates of all types go
Speaker 1: up pretty quickly, especially for things like mortgages, and with
Speaker 1: housing being a big part of cp I, that will
Speaker 1: hopefully start to moderate some of the price increases that
Speaker 1: we're seeing in the housing market and transmit to a
Speaker 1: little bit more stability and pricing overall. But as for
Speaker 1: the other increases, those are related to a lot of problem,
Speaker 1: solve thing that needs to go on industry by industry.
Speaker 1: So what is an investor to do right now? Especially
Speaker 1: if UM we are in a position where markets are
Speaker 1: going to just sure and lower and lower UM. Where
Speaker 1: where does an investor go? Well, I think one of
Speaker 1: the things here that's really important is to try to
Speaker 1: focus on time horizon and that's not easy to do
Speaker 1: when markets are sometimes going up and down three, you know,
Speaker 1: one day after the other. But I think it is
Speaker 1: really these are going down three one day after the other.
Speaker 1: They have been and there's been there's been a few
Speaker 1: that have been up. But I agree it is a
Speaker 1: very choppy environment and I think it's I think it
Speaker 1: is likely to stay that way. It's not an easy
Speaker 1: environment to make some changes in though, because I do
Speaker 1: think that the longer term fundamental backdrop is still pretty sound.
Speaker 1: So forecast for the economy are still for pretty decent
Speaker 1: growth New York FED at at four percent or so,
Speaker 1: Earnings came in pretty solid this quarter, and the outlook
Speaker 1: going forward is pretty solid. So I think the underlying
Speaker 1: fundamental picture is still very decent, if not good, But
Speaker 1: it's in this macro environment that's been very difficult and
Speaker 1: The challenge there of is we don't know the timeline
Speaker 1: exactly when those problems will change, but when they do,
Speaker 1: those clouds will start parting. And I think what we
Speaker 1: see behind it is is a pretty good backdrop again
Speaker 1: for the economy and earnings. Is it even worth your
Speaker 1: time and analysis and investors time and analysis to try
Speaker 1: to get a sense of where the bottom is? Are
Speaker 1: there any valuation calls to be made? Is there a
Speaker 1: volume call to be made where you say, Okay, this
Speaker 1: feels like the bottom. Yeah, that's never easy to do.
Speaker 1: Certainly evaluations come in quite a bit, so that's a
Speaker 1: bit compelling. Um. I think sentiment has gotten to the
Speaker 1: sort of maximum awfulness, So that's potentially another sign that
Speaker 1: we could be nearing a bottom. And the thing that
Speaker 1: I'm really looking for is when do we see any
Speaker 1: change in the things that have caused the momentum to
Speaker 1: the downside to really build? And again, in my mind,
Speaker 1: there's really only two ways to break that downside momentum.
Speaker 1: One is to see some improvement in inflation, the biggest
Speaker 1: brick in the in the wall of where as he
Speaker 1: were saying, And the second would be if we get
Speaker 1: the passage of time and a little bit of stability,
Speaker 1: and investors again are allowed to you know, enabled to
Speaker 1: look forward a bit and look at the picture that's
Speaker 1: headed over the next six quarters or so when we
Speaker 1: think the earnings backdrop is good. So either of those
Speaker 1: two things I think would turn the tide of it.
Speaker 1: It's a pretty challenging and unpredictable environment right now. Do
Speaker 1: you like any alternative assets? I mean, with your hedge
Speaker 1: fund history, where are you hedging? Yeah, no, that's a
Speaker 1: good question. It should be a good environment for a
Speaker 1: number of different types of alternative investments, partly because of
Speaker 1: the time horizon function and partly because of the ability
Speaker 1: to hedge out some market risk. We do think that
Speaker 1: stock selection plays a really key role here, So strategies
Speaker 1: like long short equity or active equity management on the
Speaker 1: on the public market side, um, we like a lot
Speaker 1: because we think again that problem solving is happening industry
Speaker 1: by industry, company by company having to deal with the
Speaker 1: myriad of issues that have come up as a result
Speaker 1: of COVID and supply chain challenges and staffing challenges, and
Speaker 1: we could go on and on with the challenges, but
Speaker 1: companies solving those, we think sets up very well for
Speaker 1: stock selection here, all right, Robert here, thank you so
Speaker 1: much for joining us. Good good stuff there, Robert Teeter,
Speaker 1: head of Investment Policy and Strategy Group of Silver Crust
Speaker 1: Asset Management. Now, let's get to marijuana. Kim Rivers joins
Speaker 1: us chair and CEO over at true leave UM and
Speaker 1: can tell us, first of all, what exactly you're doing
Speaker 1: in the industry. You're growing? Are you an intermediary? Are
Speaker 1: you selling? What's true leave do sure So truly is
Speaker 1: a multi space operator. We operate in eleven markets across
Speaker 1: the US. We have a very large fut print with
Speaker 1: the largest retail supprint of a hundred and sixty five
Speaker 1: retail locations and over four million square feet of cultivation
Speaker 1: and processing, which allows us at the scale to manufacture
Speaker 1: over SKUs that we distribute through both retail and wholesale channels.
Speaker 1: All right, So, to me, the most interesting thing complex
Speaker 1: and difficult in the cannabis industry right now is UM
Speaker 1: identifying strains and translating that to the consumer. I just
Speaker 1: watched eight documentary CBD Nation and talked about UM, the
Speaker 1: fact that certain strains can shrink tumors, fight Alzheimer's. UM
Speaker 1: do all these amazing things, but you've got to have
Speaker 1: the right ratio of THHC to cb D as well
Speaker 1: as the right turpenes um and it gets so difficult.
Speaker 1: How do you do that? Yeah, well we think that
Speaker 1: obviously communication through brand is uh, you know where the
Speaker 1: future of cannabis and certainly something that we're very focused on. UM.
Speaker 1: You're speaking about, you know, both ratio in terms of
Speaker 1: different CANNABINALT components of products. There's a lot of work
Speaker 1: and we're doing a lot of work right now on
Speaker 1: the R and D space around UM, you know, formulations
Speaker 1: of specific products to address specific concerns. But really it
Speaker 1: comes down to you know, basic brand building and basic
Speaker 1: basic communication and matching brands UM with needs skates across
Speaker 1: markets at the correct value propositions. So UM, you know,
Speaker 1: certainly there's exciting work that's going on in the annabis
Speaker 1: arena UM and we're we're friend and center in that
Speaker 1: work across That's just what we're doing in our eleven markets.
Speaker 1: So what are the brands UM out there. I'm not
Speaker 1: as familiar with the flower as I am with the edibles,
Speaker 1: but you've got conna Um, You've got plus you've got
Speaker 1: Kiva that are big players. What brands are you are
Speaker 1: you running? Yeah? So I mean on the edible front, right,
Speaker 1: we have we have see Talk that we run in house.
Speaker 1: We launched that that suite of products UM earlier this
Speaker 1: year across UM again across our home markets. We also
Speaker 1: have a brand partnership with with Banging in the edible space. Uh.
Speaker 1: When we look at our wellness, health and wellness brands,
Speaker 1: we have Momenta Ethanson who is the Survivor winner and
Speaker 1: just completed the Boston Marathon as a brand ambassador for US. Uh.
Speaker 1: He actually completed the Boston Marathon utilizing our products as
Speaker 1: part of his regimen. Uh, so that was very exciting.
Speaker 1: We have, certainly on the flower side, our premium flower
Speaker 1: Strange Streams are cult of our collection which have to
Speaker 1: your point communicated benefits of higher level PC but also
Speaker 1: a higher level of turpene and flavonoid profiles which have
Speaker 1: been very very well adopted in our markets. So again
Speaker 1: it's important to have brands across segments. Muses our our
Speaker 1: concentrate line again for folks who who are are concentrate
Speaker 1: users UM and you know it's UM. We've got also
Speaker 1: a partner with Blue River, which is a solventless company
Speaker 1: who's doing some exciting work on the solventless side of things.
Speaker 1: But um, really I would stay going back to edibles.
Speaker 1: One of the things that we've really been focused on
Speaker 1: in edibles is not only, of course, great tasting products
Speaker 1: UM that are consistent, but also adding in additional nanoformulations
Speaker 1: fast act. Yeah. Act. That's the key, Paul, because you
Speaker 1: don't want to you don't want to take an edible
Speaker 1: and think, like a half hour later, this isn't working.
Speaker 1: Then you eat another one only to realize that was
Speaker 1: too much. Right, So the key this nanotechnology. So what's
Speaker 1: the key again, I'm ready. There's a nanotechnology that helps
Speaker 1: it helps you get hit, get get the hit of
Speaker 1: its master so that you know, you know how your
Speaker 1: dose should be exactly. Hey Kim, where are we with
Speaker 1: kind of the state by state cannabis legislation? How broad
Speaker 1: is this? Like? How many states can cannabis be recreational sold? Uh? So,
Speaker 1: I mean currently recreational cannabis UM is available UM in
Speaker 1: you know, less than half of the states, but that's
Speaker 1: certainly increasing and we expect to increase that to increase
Speaker 1: over time. We've got large parts of the country, particularly
Speaker 1: in the southeast, and then uh, you know, the the
Speaker 1: central part of the country that have yet to adopt
Speaker 1: medical programs. Um. So you know, typical lifecycle of cannabis
Speaker 1: adoption and the state is to lead with a medical
Speaker 1: program that oftentimes is restrictive on the front side and
Speaker 1: then develops over time into a more lenient and then
Speaker 1: finally an adult use market. And certainly that's the pattern
Speaker 1: that we've seen. Yeah, across it's all going there. It's
Speaker 1: just it's a matter of time. Where are you on
Speaker 1: the Sativa versus Indica debate, because well, we've got to
Speaker 1: define that, Okay. So there's a lot of people who
Speaker 1: swear by sativa versus Indica, saying the former gives you
Speaker 1: like a nice head buzz, it'll get you energetic, maybe
Speaker 1: a little pressure behind the eyes, but you can be
Speaker 1: really creative and get things done, whereas indica is like
Speaker 1: a couch high. It's a body high. It'll help you sleep,
Speaker 1: you know. Um. But then some people say that differentiator
Speaker 1: isn't necessarily reliable. What do you think, Kim, Well, I mean,
Speaker 1: I think and again it all comes down to the
Speaker 1: science and and really I mean the science and indicate
Speaker 1: sitiva are are labels that that have developed over time
Speaker 1: as just a simplified indicator on how certain strings typically
Speaker 1: affect folks. UM. But really it does come down to
Speaker 1: UM again the terp turpine profile UM and in the
Speaker 1: genetics of that particular plant UM, which again is why
Speaker 1: we think there is such an opportunity for clear communication
Speaker 1: UM in branding in this in the space. So you know,
Speaker 1: I think that looks to tiva indica serve as a
Speaker 1: as a you know, a decent indicator so that folks
Speaker 1: can make at least an informed UM informed decision, but
Speaker 1: really as just like just like with wine or with
Speaker 1: other other products, that folks become more sophisticated. We find
Speaker 1: that UM, you know, instead of just focusing on those
Speaker 1: labels UH there instead you know, gravitating more towards understanding
Speaker 1: what the underlying UM, you know, components of that particular product,
Speaker 1: all about the turps. I think that's the key, you know,
Speaker 1: and the science there's still a long way to go
Speaker 1: in terms of identifying the turpins and figuring out what
Speaker 1: they do, UM, what mixtures UH result in in which affects.
Speaker 1: I think it's just so fascinating UM you're the extra.
Speaker 1: I'm learning him. Are you high right right now? No?
Speaker 1: I just said earning, so m my my, now I am.
Speaker 1: I have been if you can tell my throat I have.
Speaker 1: I have been kind of pounding some uh let's see
Speaker 1: throat coat tea and some big cuill over here. But
Speaker 1: sometimes if you're congested, maybe just a little bit of
Speaker 1: you know, just just one little hit can can dry
Speaker 1: you up right away, right away. All right, Kim Rivers,
Speaker 1: thank you so much for joining us. Kim Rivers chair
Speaker 1: and CEO of Truly It is a publican trade stock.
Speaker 1: T c n n F is the ticker. Ed Ludlow
Speaker 1: is also in San Francisco, UM and he is basically
Speaker 1: our kind of evies reporter rocket ships. He's the rocket guy. UM.
Speaker 1: He really covers all the Silicon Valley like tech stuff.
Speaker 1: And what about weed? Do you ever indulge? I do
Speaker 1: not cover that industry and I do not indulge, but
Speaker 1: in California many people do. And that's do we have
Speaker 1: a dedicated before we get to riving, because that's why
Speaker 1: do we have a dedicated weed reporter. We do. Tiffany
Speaker 1: Carry and I really recommend you follow her on Twitter
Speaker 1: and on the Bloomberg terminal for all of her reporting.
Speaker 1: All right, I'm in let's get to Ribbyan right now,
Speaker 1: because um, I was not only UM was I reading
Speaker 1: the stories yesterday and following very closely, especially because I'm
Speaker 1: sure you saw that Folkswagen is bringing back the International Scout. Yes,
Speaker 1: and it looks a heck of a lot like a Ribban.
Speaker 1: It kind of does, isn't it. Yeah, And it's electric.
Speaker 1: It'll be a direct competitor UM to that, and the
Speaker 1: Bronco went for it. Finally electrifies the Bronco. Why didn't
Speaker 1: bring that one out electric first? I'll never understand. But
Speaker 1: Ribbyan did pretty well. And I saw an analyst quote
Speaker 1: UM at a Wells Fargo calm Lange, and I thought
Speaker 1: was really good. He said, no, bad news is sometimes
Speaker 1: good news. Yeah. I mean, that's basically the perfect sum
Speaker 1: of the earnings that nothing really happened. You know. They
Speaker 1: reaffirmed guidance for the year they'll build twenty five thousand evs.
Speaker 1: That was already essentially a cut forecast of the year
Speaker 1: because the factory on paper was capable of doing fifty
Speaker 1: thousand this year and supply chain problems part shortages. Um,
Speaker 1: But you know this is a company that's fledgling. Right.
Speaker 1: We've been so caught up in the equity story where
Speaker 1: the stocks fallen from a hundred and seventy two dollars
Speaker 1: a share in November following the I p O to
Speaker 1: around dollars a share that we forget. It's just a
Speaker 1: fledgling company trying to get off the ground. So it
Speaker 1: is is there still again judging by the start press
Speaker 1: you just mentioned here, we're down sev year to date, right,
Speaker 1: I guess there's real concern about it. This is an
Speaker 1: ongoing concern whether they can actually make enough cars to
Speaker 1: turn a profit. We've we've really been debating this um
Speaker 1: in the team today because not all EV makers or
Speaker 1: would be ey makers are equal, right, you know, Rivian,
Speaker 1: I've been inside the factory. It's real. You know, they
Speaker 1: produced around twenty vehicles in the quarter. They've built five
Speaker 1: thousand of them since starting production in September. They are
Speaker 1: supply constrained, right, That demand vastly outweighs their ability to build.
Speaker 1: But their ability to build is also constrained by part shastages.
Speaker 1: And the message from management on the cool was very
Speaker 1: much it's improving and and they're having to go cap
Speaker 1: in hand right to their suppliers and say we're ready
Speaker 1: to build vehicles. You guys just have to give us
Speaker 1: the parts, because when you're a small player, you don't
Speaker 1: have that leverage of scale that say a Tesla has
Speaker 1: or a GM or Ford has to put pressure on
Speaker 1: supplies to make them come up with the goods. By
Speaker 1: the way, your your wedding is coming up. If I decided, listen,
Speaker 1: I'm gonna give breaking News a Rivian for his wedding,
Speaker 1: UM and I put in the order today, would I
Speaker 1: get the truck and time? No? Not even close. So
Speaker 1: I mean we're talking. That's a generous offer. By the way, Matt,
Speaker 1: you know my better half, she's very much thinking about
Speaker 1: a future home and sort of kitchen where but if
Speaker 1: a Rivian would be good. But this is the story.
Speaker 1: You know that it's a one or two year waiting list.
Speaker 1: It's exactly and it's one or two you're waiting list
Speaker 1: for an expense SA products. They've already raised prices, right,
Speaker 1: and they've actually come out and said subsequently that we
Speaker 1: can't actually guarantee the price. Now, how much is a
Speaker 1: conservatively built I'm sure you've been on the configurator and
Speaker 1: put together your dream riving and how much is it
Speaker 1: a conservatively built truck dollars? Basically, Yeah, it's a lot,
Speaker 1: isn't it. And especially if you're gonna wait by that time,
Speaker 1: you'd imagine that Ford with the F one fifty might
Speaker 1: use that opportunity to to scale quicker and offer a
Speaker 1: lower end product similar price point though, by the way,
Speaker 1: because I've I've configured my F one fifty lightning on
Speaker 1: the website and I also get to eight or ninety's
Speaker 1: and that's without putting on the rooftop tent and um
Speaker 1: I got the tunnel grill. I mean, there's so many
Speaker 1: cool things, especially that you can add to ominal fashioned stock.
Speaker 1: Guy when I buy an imp and I see, uh,
Speaker 1: you know some of these big big insider self stock
Speaker 1: like day one when they're when when they can, like
Speaker 1: in this case, forward and shaping work and sold the
Speaker 1: ribbyan staff. What does the company say about that? Yeah,
Speaker 1: they they're sanguine about it. I mean, you raise a
Speaker 1: really good point. A lot of the pressure on this
Speaker 1: stock in recent weeks has been the lock up expiry, right,
Speaker 1: and this was a blockbuster ip O. Remind your listeners
Speaker 1: six biggest I p O in in US history, the
Speaker 1: biggest one at a time where it was still revenue
Speaker 1: still distant volume revenue sales were actually soften. They expecting
Speaker 1: this quarter had just gone, Um, how do you valueate?
Speaker 1: I mean on the cool Adam Jonas of Morgan Sanley,
Speaker 1: who you guys are familiar with, he was really fixated
Speaker 1: on enterprise value. Superstar car analyst, right, superstar car analyst.
Speaker 1: And he was like, guys, the market has no patients
Speaker 1: for companies like yours who are burning through cash. Ribbyan's
Speaker 1: point is, well, we are burning through cash, but we
Speaker 1: have seventeen billion dollars on the balance sheet. I don't
Speaker 1: want to pus in the same bucket as Nicola. That's
Speaker 1: what I'm saying is that not we v makers are equal.
Speaker 1: Right that you you think about the Lord's Towns, the Nicholas,
Speaker 1: they don't have seventeen billion dollars of cash. The concern
Speaker 1: from market, and what you see reflects in the equity
Speaker 1: story is it's going to take them a lot and
Speaker 1: a long time to reach profit. But the message from
Speaker 1: the management was scale, scale brings profit. We've got a beautiful,
Speaker 1: shiny factory. And I can tell you because I know
Speaker 1: I've been there. Thousands of built trucks are on the
Speaker 1: lot waiting for delivery. They just fledgling working out the logistics.
Speaker 1: I like the suv uh, the enclosed suv version, rather
Speaker 1: than the pick up truck, because if I'm gonna pick
Speaker 1: up truck, I'm gonna get America pickups. Trying to get
Speaker 1: American pickup truck ed love West Coast Corresponding Bloomberg News
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