Rivian: A Truly Scary Valuation

A.J. Button
12.2K Followers

Summary

  • EV maker Rivian recently went public and catapulted to a $105 billion market cap despite having almost no sales.
  • Customers have "pre-ordered" Rivian trucks, but these sales mostly consisted of small down payments.
  • Rivian is actually collecting some revenue though it may not be recognizable under GAAP.
  • In this article, I will develop a slightly bearish thesis on Rivian, arguing that the stock's current valuation is extremely steep.

Electric Truck Maker Rivian Debuts On The Nasdaq Exchange

Michael M. Santiago/Getty Images News

In case you missed it:

Rivian (NASDAQ:RIVN) just had the biggest U.S. IPO since Meta Platforms (FB).

The listing is reported to have raised $11.9 billion, and the stock reached a $105 billion market cap after

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This article was written by

12.2K Followers
Financial journalist. Passed CFA Level 1. Seeking value and dividend growth opportunities, and sharing what I find on Seeking Alpha. Follow me on Youtube and Twitter: twitter.com/AJButton2

Analyst’s Disclosure:I/we have a beneficial long position in the shares of FB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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