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mkennedy1996

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Rivian raises IPO price range and could now be worth up to $65 billion (cnbc.com)

Rivian raises IPO price range and could now be worth up to $65 billion

November 5, 2021
  • Rivian plans to offer 135 million shares priced between $72 and $74, up from $57 to $62, it said in an updated securities filing on Friday.
  • At the top end of that current range, and assuming underwriters exercise an option to purchase 20.25 million additional shares, Rivian would be worth more than $65 billion.
  • Rivian plans to go public as soon as next week, sources previously told CNBC.
Electric vehicle start-up Rivian Automotive raised the expected IPO price of its shares on Friday.

Rivian now plans to offer 135 million shares priced between $72 and $74, up from $57 to $62, according to an updated securities filing. At the top end of that current range, and assuming underwriters exercise an option to purchase 20.25 million additional shares, Rivian would be worth more than $65 billion.

Rivian, which is backed by Amazon and Ford, plans to go public as soon as next week, sources previously told CNBC. It plans to list on the Nasdaq under the ticker symbol “RIVN,” according to Rivian’s IPO prospectus filed last month.

The rich valuation would mean Rivian is only slightly less valuable than traditional automotive giants like GM and Ford, which holds a stake greater than 5% in Rivian. The company has never recorded any material revenue, and expects at most to generate $1 million in revenue in the quarter ended Sept. 30, according to its filings. It lost $994 million in the first six months of the year.

It would also make Rivian the titan among a crop of electric vehicle start-ups and recently public companies from the U.S., including Fisker, Lordstown Motors and Lucid, and would put it on par with Chinese electric vehicle maker Nio.

Rivian is developing last-mile commercial delivery vans for Amazon and recently began production on its hotly anticipated electric pickup, the R1T. Rivian last week disclosed in an amended securities filing it plans to deliver 1,000 R1Ts by the end of the year.

On Thursday, a former female executive at Rivian revealed in a gender discrimination lawsuit filed against the company that she raised concerns about the company’s “ability to deliver on its promises to investors” to top executives. The executive, Laura Schwab, claimed those concerns were dismissed along with complaints that female employees were being shut out of critical meetings and marginalized.

A Rivian spokesperson previously declined to comment on Schwab’s lawsuit and allegations.
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Canthoney

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Hmmmm, not sure how I feel about this. Anyone change their allocation amount on the bad news this week? I’m feeling uneasy about it to be honest, I may decrease how much I invest
 

Denver_Paulie

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Hmmmm, not sure how I feel about this. Anyone change their allocation amount on the bad news this week? I’m feeling uneasy about it to be honest, I may decrease how much I invest
Can you elaborate on why you feel uneasy? Large corporations get sued all of the time.

Is news of a lawsuit traditionally released a week prior to going public? No, but it is a leverage play. And most people understand the timing.

At the end of the day, cooler heads, and attorneys, will figure out a settlement and this will go away. No one wants a long term, expensive court battle, nor the negative public exposure..

Just my opinion from 25 years of working for very large global banks. Wondering what others think.
 
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NashvilleR1S

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I'm assuming theres no way we still get it at $62 right?
 

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Canthoney

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Can you elaborate on why you feel uneasy? Large corporations get sued all of the time.

Is news of a lawsuit traditionally released a week prior to going public? No, but it is a leverage play. And most people understand the timing.

At the end of the day, cooler heads, and attorneys, will figure out a settlement and this will go away. No one wants a long term, expensive court battle, nor the negative public exposure..

Just my opinion from 25 years of working for very large global banks. Wondering what others think.
That’s a small part of it for me, it bothers me, but I also met RJ in person and he didn’t give me that impression that he would tolerate that kind of behavior. I’m sure the person that terminated her employment will be soon be following her out the door. The larger part of me for me is the delays happening for customers that we’re supposed to be receiving their trucks now, and this month.

Why would they build 1000 vehicles by the end of this year only to deliver them to employees? I understand the quality control, and ramp up, but the third-party customers being told that they’re not going to receive theirs until March or April in some cases really makes me wonder if they’re manufacturing is much further behind than what they’re disclosing. Also the fact that they still have on their website all launch edition holders will be contacted by Thanksgiving, which is highly unlikely.

Things just aren’t adding up for me
 

Canthoney

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LoneStar

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I can't escape the premonition that RIVN will be trading in the $30-40 dollar range before 2021 ends. My head tells me the smart play is buy the inevitable dip whenever it happens. My heart wants to go all-in about $10k because "Rivian is awesome and is going to be a world-beater, earth-saver." Right??
 

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Denver_Paulie

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That’s a small part of it for me, it bothers me, but I also met RJ in person and he didn’t give me that impression that he would tolerate that kind of behavior. I’m sure the person that terminated her employment will be soon be following her out the door. The larger part of me for me is the delays happening for customers that we’re supposed to be receiving their trucks now, and this month.

Why would they build 1000 vehicles by the end of this year only to deliver them to employees? I understand the quality control, and ramp up, but the third-party customers being told that they’re not going to receive theirs until March or April in some cases really makes me wonder if they’re manufacturing is much further behind than what they’re disclosing. Also the fact that they still have on their website all launch edition holders will be contacted by Thanksgiving, which is highly unlikely.

Things just aren’t adding up for me

I hear you, but I think we need to understand how hard it is to launch a new car company. Just look at Tesla as an example. They had a gradual increase in production that lasted 8 years - that happened once the Model 3 hit volume production. And, the Model 3 was almost 2 years behind schedule for full ramp.

Now imagine trying to do that but with a global pandemic that hit and had massive impacts all across the supply chain. Makes it even harder to ramp production. This has affected every single auto manufacturer, not just Rivian. A new Tesla Model 3 or Model Y is 3 or 4 months for delivery, or longer. A new Porsche Taycan is almost a year out if you order one today.

The world is a very weird place right now, so I think we need to moderate our expectations for Rivian deliveries.
 

2021R1T

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"Rivian is awesome and is going to be a world-beater, earth-saver." Right??
World-beater was two years ago. Now it is just another potential niche EV in a sea of new offerings. The Ford Lightning will beat Rvian to market with any significant production numbers. Unfortunately I don’t think the turtle wins this one.
 

LoneStar

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I get that trust me. I made a Lightning reservation within 5 minutes of banks opening May 19th
 

kanundrum

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I can't escape the premonition that RIVN will be trading in the $30-40 dollar range before 2021 ends. My head tells me the smart play is buy the inevitable dip whenever it happens. My heart wants to go all-in about $10k because "Rivian is awesome and is going to be a world-beater, earth-saver." Right??

This, I think eventually it will be profitable just will take time.
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