Should You Invest in the Rivian IPO?Įven in the rosiest Tesla-like scenario, it could be a long time before a bet on Rivian pays off. Throw in the likes of General Motors (with all-electric Silverados and Hummers), and Rivian will have a hard road to climb. The cheapest option is said to be priced at about $40,000. Consumers are very interested in the Cybertruck it has a reported reservation backlog of around 1.3 million. It’s been working hard to perfect its own outlandish pickup truck model, the aptly named Cybertruck, which looks like something out of a Mad Max movie. Tesla’s not exactly going to roll over and forgo the most valuable slice of the auto market, either. “CEO Jim Farley stressed that Ford will not give up its leadership in trucks as it moves to BEVs.” “Ford’s manufacture of a full-size pickup shows how serious the company is about BEVs, as this segment is the lifeblood of the company at about 1 million units a year,” noted Morningstar analyst David Whiston after Ford’s May investor day.
It’s already garnered more than 120,000 reservations since its debut in May while Rivian is still making itself known to the general public. Much like the R1T, the model also has a 300-mile range but carries a price tag that’s $30,000 less than Rivian’s. And among Rivian’s toughest competitors is one its top investors: Ford Motors.įord will begin selling an EV version of its famed F-Series pickups in 2022, named the F-150 Lightning. Rivan is hardly the only auto manufacturer aiming to corner the EV truck market. ( AMZN), the latter of whom has already ordered 100,000 units for delivery by the end of 2030. This has whetted investor appetite, with Rivian recently raising $2.5 billion from the likes of T. That means no bleeding of profits to any middlemen. In addition, Rivian will have the added benefit of, like Tesla, selling their trucks directly to consumers rather than going through a traditional dealership model.
by sales are either pickup trucks or SUVs. In fact, the top six automobiles in the U.S. Remember, the Ford F-150 is and has been (seemingly forever) the best-selling vehicle in the country. The hope is that mass affluent truck shoppers won’t be able to get enough of Rivian. Just as importantly, they’re being advertised in the “Built Ford Tough” mold: Glossy videos showing the vigorous vehicles vying with the elements, whether desert sand or mountain snow.
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Pricing of both models starts around $70,000, and each features a base driving range of more than 300 miles on a full charge. With its R1T and the R1S models, Rivian is aiming to do pickup trucks and SUVs what Tesla did with sedans. Not only did the owner of a Tesla Model S show themself to be someone who cared about the environment (despite questions about how green Tesla really is), but the car itself looked great. Tesla has rocketed to ever higher valuations in recent years at least in part because its cars became so cool. Via TD Ameritrade's Secure Website Is the Rivian IPO the Next Tesla? Remember Nikola Corp, which sought to become the Tesla of 18-wheelers? Founder and ex-CEO Trevor Milton was recently indicted for fraud by a federal grand jury for lying about “nearly all aspects of the business.” Rivian is no Nikola, but IPO investors should always do their homework. The EV space alone is littered with the wreckage of failed companies that promised to help solve climate change and make you rich along the way. But keep in mind, splashy IPOs are never a sure thing. It’s that meteoric growth that is almost irresistible for potential Rivian IPO investors. Instead, it’s setting its sights on growing like electric vehicle powerhouse Tesla, Inc ( TSLA), which has seen its valuation shoot up from about $75 billion at the end of 2019 to almost $730 billion today. Rivian is hardly targeting GM or even Ford Motors ( F), though. While Rivian’s official valuation has not been made public, a report in August pegged the company’s value at around $80 billion, which is greater than the market cap of industry stalwart General Motors ( GM). Rivian Automotive, the California electric vehicle upstart, has confidentially filed paperwork with the Securities and Exchange Commission (SEC) to become a publicly traded company.
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