Rivian Raises Target IPO Price (RIVN)

[nfrank]

Why would they build 1000 vehicles by the end of this year only to deliver them to employees?

It might be better business practice in the long run to keep your employees happier than customers.

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[Andy96734]

Well, If one stuck with Tesla or Apple in the opening years ….how wealthy they would be. Now its take stock (literally) in Rivian and ride it the next few years…..and we can meet back here in 2025 and compare gains.

 

[simpsonhomer]

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.

You can judge that simply by meeting a public figure at an event where they're the center of attention?

 

[Chris S]

I was skeptical about the valuation previously, thinking about buying 100 share w/ the hope that maybe it might accelerate the delivery of my R1T. W/ the higher price range, no frickin' way. I'll consider buying it after the price tanks after the IPO. Don't get me wrong, I love the company, its mission, and its products, but their anticipated valuation is just silly given that they still have a LOT to prove.

 

[jjswan33]

Good news is with the higher price and the underwriters taking the optional additional shares Rivian will raise almost 12b. That’s a lot of cash to build out their service/charging infrastructure.

 

[Ladiver]

I am very curious how they are coming up with their value? Almost every analyst I have listened to thought $60 was probably too high. I did my own analysis and there is no way it should hold at IPO. The market is stupidly over priced right now and I think RIVN stock will tank in the short term. I think in 3-5 years, the valuation may be accurate only because there will be hard data. Pricing for perfection only leaves one direction for the stock to go.

 

[SeaGeo]

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.

A model S and X is also out 9 to 12 months.

I am very curious how they are coming up with their value? Almost every analyst I have listened to thought $60 was probably too high. I did my own analysis and there is no way it should hold at IPO. The market is stupidly over priced right now and I think RIVN stock will tank in the short term. I think in 3-5 years, the valuation may be accurate only because there will be hard data. Pricing for perfection only leaves one direction for the stock to go.

I wonder if they're benchmarking against Lucid's market cap so as to not start out on a "discount".

 

[mikeB]

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??

What do you base your projected price range on?

 

[St Bernard]

I am very curious how they are coming up with their value? Almost every analyst I have listened to thought $60 was probably too high. I did my own analysis and there is no way it should hold at IPO. The market is stupidly over priced right now and I think RIVN stock will tank in the short term. I think in 3-5 years, the valuation may be accurate only because there will be hard data. Pricing for perfection only leaves one direction for the stock to go.

So obviously you should wait a few years to buy it. We will know in a few weeks who was right. However right now the stock is over sold. So someone thinks it’s going up.

 

[Ladiver]

So obviously you should wait a few years to buy it. We will know in a few weeks who was right. However right now the stock is over sold. So someone thinks it’s going up.

I agree with you. I'm just curious who that someone is. I haven't heard anyone from the financial sector say that RIVN is a "buy".
This is starting to look like GameStop.

 

[simpsonhomer]

I agree with you. I'm just curious who that someone is. I haven't heard anyone from the financial sector say that RIVN is a "buy".
This is starting to look like GameStop.

Analysts have also been screaming for years that TSLA will tank. Statistically, financial analysts are right only half the time, so you might as well literally flip a coin. Just buy what you think will go up and block all the noise—those guys are just out to sell themselves on TV.

 

[EVTrukHog]

I just can’t see any advantage to buying IPO shares. The valuation has too much hype and optimistic emotion in it. RIVN certainly has long term value potential, but if that’s your play why buy at IPO? A more prudent strategy seems to be wait, watch, and buy at the inevitable dips…then hold.
….just my perspective. YMMV.

 

[LeoH]

I was planning to allocate around 6k for the IPO. But now I think I'll split my risk, 3k at IPO and 3k later depending on the prices.

 

[TessP100D]

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.

And the Rivian is really expensive. So tney won’t come close to the Tesla growth.

 

[TessP100D]

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.

Well said.

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