When to use the Rule of 40 for Analyzing a Stock

The rule of 40 is traditionally used for SaaS investors, yet it seems as though the course material applies it to non-SaaS companies such as Rivian to indicate a signal of distress. I know Rivian is building a “SaaS like” component within their business model with their software subscription services, however I intuitively would use automotive or EV-specific bench marks when analyzing. Could you clarify how the group decides when and how to apply the Rule of 40 outside pure SaaS contexts if at all?

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