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Sean

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The biggest difference with new car companies as they are being treated more like tech companies than traditional manufacturers. For start-ups too, a lot of traditional metrics break down for what the market values vs. what the fundamentals say.

$80B is a lot but when put in context of a $700B cap for Telsa (which unfortunately will be the only comparison talked about) it has a lot of perceived value. Rivian is signaling ambitions as much as anything with that price. If you think about what's been rumored/confirmed as well with model line, factory, and international expansion their goal is now to be one of the biggest auto companies for which $80B seems less out of place.
 

jtshaw

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$80Bn is huge, but keep in mind that isn't reflective of the current value, it's reflective of potential. I'd guess the biggest factor in that valuation is thinking about future cheaper products combined with being the primary supply to potentially the largest user of last-mile delivery vans on Earth (Amazon).
 

PastyPilgrim

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As cars become more software-based/focused it makes sense that these companies be treated more like software/tech companies than traditional car manufacturers. It's a lot easier to protect and profit off of software secrets and innovations than hardware.
 

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$80B is also reflective of how much the underwriters have promised to support the IPO event. That said, the amount is still not public, but just a "leak", which is one method of the traditional IPO process for firming up a better valuation based on feedback.
 
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hed

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I was worried they would do a IPO before delivering trucks in any meaningful amounts. If that were to happen somehow it would make me question their priorities. If they do release vehicles in September and the initial reviews are as good as we all hope then I would probably invest within the first few months after they hit the market.
 

BBeach

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Anyone else worried the IPO is going to be overpriced when it first comes out? I've never bought an IPO but I dabble in Stocks and plan on buying once its available.

I am have been a futures trader for over 30 years. I never have bought a stock on the IPO that I didn't sell quickly and rebuy at a lower price. A perfect example was COIN (coinbase) IPO that opened at something like 380 rallied to 429 over the next few days then tumbled over the next few months to 236 and found stability there. Facebook did the same 29 opening rallied into the 30's before tumbling down to 19 then took off from there. I would expect the same. I would buy the pullback after the IPO IMO.
 

Zoidz

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Valuation is high. You should think hard about getting in on day 1 vs. waiting a week or two. Remember that the big gains on an IPO like this are going to be made by the institutional investors who got in before the public, selling to the retail investors.

i will follow this closely, but I'm not chomping at the bit to get in on day 1.

 

Blueassassin

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Good read that defiantly scares me about buying first day especially at its current rating.
 

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flabyboy

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Here’s a very good example why it’s best to wait a bit
Rivian R1T R1S Rivian Files For IPO Valued at $80 Billion! UPDATE: S-1 Filed 8D7BD345-9AD6-4F81-B848-A5490C731EBC
 

Dark-Fx

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I am have been a futures trader for over 30 years. I never have bought a stock on the IPO that I didn't sell quickly and rebuy at a lower price. A perfect example was COIN (coinbase) IPO that opened at something like 380 rallied to 429 over the next few days then tumbled over the next few months to 236 and found stability there. Facebook did the same 29 opening rallied into the 30's before tumbling down to 19 then took off from there. I would expect the same. I would buy the pullback after the IPO IMO.
Are you talking about being part of the IPO or buying as soon as market opens for trade on the stock? I try not to sell off any IPO right away but I do set limit orders of 100-150% over the IPO price. 10-20% of the IPOs I buy end up hitting that number in the first 30 minutes of trading and come back down below the IPO price sometime in the next few days. I haven't always bought back in.
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