How do I buy Rivian pre IPO stock?
Buy Rivian stock
The value of Rivian temporarily surpassed that of Ford and GM in 2017.
The stock price may have tanked under those sky-high estimates, but the company is still on schedule to meet its annual production target of 25,000 automobiles.
At current low prices, Rivian might be an appealing acquisition since it is better managed than many other speculative electric vehicle manufacturers.
Since it was first made available to the public, the price of one of the most actively traded electric vehicle stocks has decreased by sixty percent.
Rivian Automotive was one of the most widely held electric vehicle stocks in 2021. (RIVN -1.41 percent). The electric car maker went public in November at a price of $78 per share; the company’s stock began at $106.75, and then within a week it exploded to a record high of $172.01.
Rivian attracted a lot of attention right from the off because to the backing it got from both Amazon (AMZN -1.24 percent) and Ford (F -0.46 percent ). (F -0.46 percent).
Before pulling out of the project in the midst of the epidemic, the Lincoln division of Ford had been collaborating with Rivian on the development of an electric vehicle (EV).
Amazon has placed an order for the delivery of 100,000 of its electric delivery vehicles by the year 2030. At the time of Rivian’s initial public offering (IPO), Amazon controlled twenty percent of the company, while Ford held twelve percent.
It’s not too late to buy Rivian
Even though it is too late to purchase Rivian at this time, if you had contemplated doing so prior to its massive post-IPO run in November, the firm would have seemed to be priced more reasonably in light of its future potential.
However, it is too late to acquire Rivian at this time. Even though it is a high-risk investment, you should consider making it if you believe the company will be able to reach its ambitious production targets for the next year.
Can Rivian grow into its valuation?
According to the estimates of industry experts, Rivian’s yearly revenue would increase to $1.8 billion if the business achieved its objective of producing 25,000 automobiles each year.
They anticipate that the corporation would incur a net loss of $6.2 billion, which is much higher than the previous estimate of $4.7 billion.
They forecast that Rivian’s sales would increase by 237 percent to $6.2 billion by the year 2023, resulting in a decrease of the net loss to $5.8 billion by that year.
In 2024, it is anticipated that the company’s revenue will rise by 98 percent to a total of $12.3 billion, while the company’s net loss is anticipated to narrow to a total of $5.0 billion from the previous year.
Although these predictions should be taken with a massive grain of salt, Rivian shares do not seem to be overpriced given that they are priced at five times predicted sales.
The business finished the period with $17 billion in cash, cash equivalents, and restricted cash on hand, despite what seems to be significant quarterly net losses.
Because its debt-to-equity ratio is so low, at 0.2, the company has the financial flexibility to take on more debt.