Official: Rivian IPO priced at $78 per share (@ $77 billion valuation)!

[2021R1T]

Does anyone think this will be shorted on the same level as Tesla was for years?

Yes, and I expect the shareholder lawsuits to start soon as well if Rivian does not start communicating and producing vehicles in volume. Going to be very bumpy based on current corporate behavior. Don’t see the IPO changing much except for initial investors who will cash out as soon as allowed.

Sponsored

 

[simpsonhomer]

MS has deducted funds to pay for the IPO shares. Check your MS accounts if you pre-funded.

 

[brainf18]

Just got off the Phone with CSR at MS. Here's the deal. After they receive confirmation the shares will be put in your MS account with a negative cash balance. Once the funds are there within time frame the funds will be automatically deducted and the shares become yours. So basically we purchased RIVN stock on layaway.

Rivian Stock Purchased showed up on my MS account as a negative balance just like the CSR said. I need to transfer "alittle" more into the account to cover since I was expecting the IPO
to be priced around $70/share. With 5 days to do that there's plenty of time.

Once this is done I won't look at it again for +/- 10 years. I'll come back then and see what's what

 

[CoachBatch]

Who’s fired up for the 930am RIVN Launch??? To the M-o-o-N !!!!

 

[GrokTime]

Once this is done I won't look at it again for +/- 10 years.

Good luck with that! ?

 

[stumptown85]

Who’s fired up for the 930am RIVN Launch??? To the M-o-o-N !!!!

Trading won't start at market open...closer to mid day.

 

[Zoidz]

Who’s fired up for the 930am RIVN Launch??? To the M-o-o-N !!!!

You forgot the second part of that:

To the M-o-o-N !!! When Lambo? ?

 

[stumptown85]

Good luck with that! ?

Had someone done that with Tesla, 10k invested would be worth $2.6m today. It's not remotely crazy as an investment strategy

 

[rivianUGA]

Does anyone think this will be shorted on the same level as Tesla was for years?

There are other issues at play, when you are talking about shorting stocks. To short, you have to be able to borrow the shares to do it. Depending on the float and what institutions have shares, it may be really difficult to short this stock.

For example, you will likely see the people trying to short HOOD get creamed in the coming weeks, Because there are not enough shares to successfully pull it off, and if the stock doesn't naturally go down, the shorts get creamed and the stock explodes upward. As a general rule, it's safer to short a stock the lower it goes--which is counter to what one would think.

If you do intend to short this, you need to at least wait until close to the end up the lockup period. But I would not recommend shorting any company that has IPOed with this sort of institutional ownership.

And as a side note, I've seen several people saying they would like to buy RIVN shares below the IPO price. "If I can get it at $55-60" they are saying. But folks this is not how this will work. It's highly unlikely you ever see RIVN at $78. When the market finally opens today it might be over $100 a share. For more on what to expect, take a look at the official IPO price of SNOW, ABNB, or DASH. And then take a look at what their first trades on the market traded at.

 

[Dark-Fx]

This is my biggest problem with trading out of the MS account. Had I known about stopping me at only 20% over "last traded price" I might have reconsidered being in the DSP.

 

[stumptown85]

There are other issues at play, when you are talking about shorting stocks. To short, you have to be able to borrow the shares to do it. Depending on the float and what institutions have shares, it may be really difficult to short this stock.

For example, you will likely see the people trying to short HOOD get creamed in the coming weeks, Because there are not enough shares to successfully pull it off, and if the stock doesn't naturally go down, the shorts get creamed and the stock explodes upward. As a general rule, it's safer to short a stock the lower it goes--which is counter to what one would think.

If you do intend to short this, you need to at least wait until close to the end up the lockup period. But I would not recommend shorting any company that has IPOed with this sort of institutional ownership.

And as a side note, I've seen several people saying they would like to buy RIVN shares below the IPO price. "If I can get it at $55-60" they are saying. But folks this is not how this will work. It's highly unlikely you ever see RIVN at $78. When the market finally opens today it might be over $100 a share. For more on what to expect, take a look at the official IPO price of SNOW, ABNB, or DASH. And then take a look at what their first trades on the market traded at.

Also, shorting is incredibly risky. Unlike owning the stock outright or buying puts where your exposure is limited, shorting can result in infinite losses.

 

[Dark-Fx]

Also, shorting is incredibly risky. Unlike owning the stock outright or buying puts where your exposure is limited, shorting can result in infinite losses.

You can still stop-loss on a short though. I'd never consider actually shorting without setting one. It sucks if it gets triggered but that's way better than infinite losses.

 

[sub]

So what do you think will come first?

• Rivian will deliver your vehicle.
• A 175 share RIVN IPO purchase will have gained enough to pay for an R1T/R1S.

 

[Redline]

So what do you think will come first?

• Rivian will deliver your vehicle.
• A 175 share RIVN IPO purchase will have gained enough to pay for an R1T/R1S.

As someone who has a July '21 R1S order that's an actual great question!

 

[jeeden]

Lots of correct points here. Not to be a broken record (I made the same point earlier) I compare this to the Airbnb IPO. It had a DSP and it priced the IPO at $68 and it opened at 1pm or so in the afternoon at $146. It dumped a little to $130 and everyone was "oh, I'll buy when it drops to $50" ... yea it never went any lower and it sits around $200 now.

Sponsored