Rivian IPO Update
You may have heard about a popular new entrant in the Electric Vehicle market. Rivian (ticker RIVN) recently announced that the company will go public tomorrow with the anticipated IPO price between $72 and $74 a share.
We wanted to pass along a few key takeaways on Rivian and the EV market as a whole.
Bull Case:
- Rivian already has developed a strong consumer following and is backed by Amazon.
- Amazon has committed to purchasing 100,000 commercial delivery vehicles.
- In addition to commercial vehicles, Rivian will produce full-size SUVs and trucks, which make up 80% of the vehicles purchased in the US.
- There is currently limited competition in the pick-up truck and SUV EV market.
- Purchasers will likely benefit from tax credits and purchase subsidies.
Bear Case:
- The Electric Vehicle market is a bubble. Continuing to provide excessive low-cost capital to the auto market will eventually have an adverse impact on RIVN performance.
- Traditional auto manufacturers will eventually crowd the space.
- Technology shifts, such as better batteries, could undermine Rivian’s competitive edge.
- Rivian’s solid early reputation could take a hit if initial quality ratings are low.
Reach out to your Vista team if you have any questions or would like further information.
Lincoln Sorensen, Family Wealth Advisor & Co-Founder
Please note: This email is for informational purposes only and not a recommendation or solicitation to buy this security.