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

[Jayhawkeye]

Rough day to IPO.

Sponsored

 

[eggpaul]

Rough day to IPO.

Well, the inflation report didn't help the market. #bidenomics.

 

[Ryanide]

I bought the 175 shares @ $78 ($13,650). Sold 69 shares @ $115 (-$7,935), leaving me with 106 shares at a cost of $5,715, or $53.9115/share.

Essentially taking the profit on the 69 shares to bring my cost average down, so now I'll let those ride and feel comfortable when the price drops. I realize that I will have a income gain of $2,553 to pay taxes on. Maybe this is not the way averages are calculated, but it works for my thinking and I feel better that I've only put out $5.7k and have more to invest later.

 

[Monkey]

Welp, already cashed out of Morgan Stanley before my ACH has hit the account. Sold my 175 @ $116 and bought 250 shares at $97 thru eTrade. Stock is hovering at $99 at the moment. Somewhat of a weird move I guess and have to get the money settled, but now I have more shares on a platform I can actually use. I’m going to sit tight for a few days and see what happens. I don’t plan on selling any, will try to get funds to buy a bunch more, especially if the price drops.

 

[McRat]

I sold at $100 just now and put $4k way towards the purchase.
Las Vegas is all about when to walk away from the table.
If things look good next quarter, I'll buy back in.

 

[sevengroove]

Smart.. I just called Morgan Stanley and they said my shares will be locked up until the opening bell tomorrow. Are you an employee? I’m just a pre order holder.

Not an employee, just a pre order holder like most folks.

 

[protamine]

I was going to try and sell but Short Term Capital gains @ 43% I just didnt want to stomach giving away half the profit. Id rather just hold and see.

 

[Monkey]

I’m looking at $6K in profit on my sale of the 175 shares, but reinvested more into the same stock, so I’m hoping the IRS won’t smack me for that one. It might have made more sense to just move my 175 shares between brokerages. I guess I’ll find out.

 

[Dbeglor]

Welp, already cashed out of Morgan Stanley before my ACH has hit the account. Sold my 175 @ $116 and bought 250 shares at $97 thru eTrade. Stock is hovering at $99 at the moment. Somewhat of a weird move I guess and have to get the money settled, but now I have more shares on a platform I can actually use. I’m going to sit tight for a few days and see what happens. I don’t plan on selling any, will try to get funds to buy a bunch more, especially if the price drops.

Seems like by my math you only lowered your effective basis by a couple dollars a share (depending on tax rate)....?

 

[BeanEW]

Obviously there are gamblers and investors on this forum.

 

[Monkey]

Seems like by my math you only lowered your effective basis by a couple dollars a share (depending on tax rate)....?

Like I said, strange move. Some of it worked out by chance too. I requested 200 shares through eTrade and was allocated none on opening. With the sale and re-buy I now own 250 shares at $75/share approximately after fees/commissions. So that’s good. I just don’t know if I’m going to owe close to $3K in tax on the sale of the initial 175 shares. If I do, that raises my basis by $12/share…. Still not terrible.

 

[St Bernard]

I’m looking at $6K in profit on my sale of the 175 shares, but reinvested more into the same stock, so I’m hoping the IRS won’t smack me for that one. It might have made more sense to just move my 175 shares between brokerages. I guess I’ll find out.

You can always sell a stock for a gain and re-buy it. You cannot sell a stock for a loss and then immediately re-buy it.

 

[carl]

I was going to try and sell but Short Term Capital gains @ 43% I just didnt want to stomach giving away half the profit. Id rather just hold and see.

Good point! How long do you have to hold before its not "Short Term Gains"?

 

[cardad]

I was going to try and sell but Short Term Capital gains @ 43% I just didnt want to stomach giving away half the profit. Id rather just hold and see.

I cashed out 100% and put in another R1S deposit. I think there’s an easy $20k arbitrage potential with the R1S so I don’t understand why they aren’t at 100k+ preorders on the SUV alone. The Escalade ESV isn’t that much nicer than this and those are going for $120k+. The gender discrimination lawsuit seems to suggest Rivian is underpricing and that means inflation could force them to increase prices soon and they should theoretically be rushing to scale production to try and beat out this inflationary pressure to capture as much market share as possible before Ford and Tesla come online and before they’re forced to acknowledge the reality of losing $5 B+ a year with thin gross margins.

 

[Dbeglor]

7

Like I said, strange move. Some of it worked out by chance too. I requested 200 shares through eTrade and was allocated none on opening. With the sale and re-buy I now own 250 shares at $75/share approximately after fees/commissions. So that’s good. I just don’t know if I’m going to owe close to $3K in tax on the sale of the initial 175 shares. If I do, that raises my basis by $12/share…. Still not terrible.

Just focusing on the original 175 shares, math was this:

Realized profit of $38/share on the 175 shares before tax
Uncle Sam takes $15/share in taxes (40% of $38), so effectively you sold for $101
Repurchased the original 175 shares (plus some) for $97.

So, you made about $4/share on the original 175 shares, or $700.

Sponsored