On September 14, Rivian Automotive (RIVN) unveiled the first all-electric R1T pickup truck.

On November 9, the highly anticipated IPO of RIVN took place, after which Rivian became the third-largest auto company by market capitalization after Tesla (TSLA) and Toyota (TM). Is Rivian Stock a Good Buy?

Rivian’s market capitalization was about $ 105.8 billion as of November 29, after the company’s stock dropped significantly from a high of $ 179. Tesla is now valued at $ 1.1 trillion. TSLA’s share price rose sharply in the past few weeks before pulling back when CEO Elon Musk began selling a 10% stake in the company.

Toyota Motor (TM) had a market capitalization of $ 246.5 billion as of November 29. General Motors (GM) has a market cap of $ 86.9 billion and Ford (F) $ 78.6 billion.

As of mid-2021, Rivian has raised about $ 10.5 billion in venture funding, including from Amazon and Ford.

Rivian has chosen an opportune time to go public as it is one of the few up-and-coming EV makers to actually manufacture and supply vehicles. Lucid Motors (LCID) has more than doubled in the last month when it began shipping. LCID went public as a result of the SPAC merger earlier this year.

Rivian’s IPO is getting a lot of attention. But investors shouldn’t try to be the first to buy back Rivian shares from the lot. With new releases, investors should wait until the starting price is determined and see how they shake up over the next few days or weeks.

Rivian plans to invest in a battery manufacturing plant, according to a Bloomberg report citing unnamed sources.

>>>>>  Alibaba falls on news of the sale of a stake in Weibo

According to local reports, Rivian is considering opening a battery factory near Atlanta. Arizona, Michigan and Texas have also submitted possible locations for the plant. The company is currently assembling batteries at its Irvine, California facility.

Rivian then plans to open a plant in Europe to begin car production by the end of 2023. It is also possible to build in the UK as well as in continental Europe.

The R1T from Amazon (AMZN) and Ford-backed Rivian have outpaced Tesla and General Motors as the electric truck market picks up steam. Rivian says limited deliveries of the R1T pickup trucks began in September and their R1S SUV is due out by the end of the year.

Rivian manufactures its vehicles at its plant in Normal, Illinois. The production capacity of the plant is 150 thousand units per year.

According to a recent Bloomberg report, the company is prioritizing the production of electric vans for Amazon. Amazon has ordered 100,000 Rivian electric vans. And while the Rivian R1T pickup has made headlines lately, Amazon vans are likely to be a source of revenue in the near future.

On October 28, Amazon announced that it owns about 20% of Rivian.

Meanwhile, the outdoor car rental company Outdoorsy is in talks with Rivian and plans to order about 1,000 Rivian trucks, CEO Jeff Kavins said in a recent interview with Bloomberg.

Invest Club Hub

Powered by