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Titan Global Capital Management's Take on Rivian IPO

Chris S

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I'm a client, and this is their perspective, which I happen to agree with. Personally, I think they should postpone the IPO until they get production up to scale. Has any company ever previously gone public with this kind of valuation prior to generating any material revenue?


Q: How are you looking at the Rivian IPO?

A:
Although Rivian has yet to sell any significant volume of its electric vans or trucks, the company is reportedly seeking a valuation of $60B at its IPO. AMZN recently disclosed a ~20% stake in the business and has pre-ordered 100,000 of their electric vans.

While the EV market is growing quickly, Rivian’s valuation is incredibly tough to rationalize with current fundamentals. We'll be sure to monitor the company as it matures in relation to our AMZN investment, but also as a potential investment in the future. –Justin Yoo, Titan Investment Analyst
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SeaGeo

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"While the EV market is growing quickly, Rivian’s valuation is incredibly tough to rationalize with current fundamentals. "

So is Lucid and Tesla. Lucid is currently sitting at about $70b. Rivian seeks to have produced about as many cars as Lucid.

Not saying any of those valuations are right, but other than the shit dhow this week has been the I have trouble valuing Rivian less than Lucid.

That being said I've been meh on an initial investment at IPO volatility for Rivian at all. A flood of positive reviews helps, but getting cars into third party customer hands would have helped more to address manufacturing ability.
 
 




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