Why I Want In On This EV IPO
$Rivian Automotive(RIVN.US$ another highly competent 100% EV manufacturer, is set to go public shortly in an IPO that should value the startup at around $65 billion. I want to own this stock, but first, what makes 100% EV companies "hot" in the first place, and why are they valued like high-growth tech companies rather than traditional automakers?
There are essentially only a handful of prominent "true" EV manufacturers. Holding a trillion-dollar-plus valuation in this space, $Tesla(TSLA.US$ is the current undisputed leader in this sector. However, other players like $Lucid Group(LCID.US$ , $NIO Inc(NIO.US$ , $XPeng(XPEV.US$ and now Rivian are emerging and should capture significant market share in future years.
These companies trade at 10-20X expected sales because their revenues are exploding and should continue to advance notably higher in the coming years. The EV segment is growing at remarkable speed, and the aging ICE industry could be left in the dust much sooner than many envisioned.
While traditional automakers are still pivoting toward more robust 100% EV programs, I now consider their ICE segments as future liabilities rather than assets. The EV sector should perpetually take market share away from ICE as we advance. Thus, you're looking at stagnant growth and lower profitability potential with traditional automakers vs. higher profitability and nearly limitless growth potential with high-quality 100% EV manufacturers. That is why we have such a massive disconnect in valuations, as traditional ICE companies and 100% EV manufacturers are two very different segments with significantly different profitability and growth dynamics.
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huatSG : Good Luck Enter Right After IPO.
Mrsjmunoz huatSG: When is that?
sloky Mrsjmunoz: Today
Mrsjmunoz sloky: At market open?
Dogoro777 : The year 1999 to 2000 boom - burst cycle all over again?
baby boomers : By October 25th they made around 46 cars at a pace of less than two cars a day. And they want $10 billion valuation?
hairless baby boomers: its $80 billion valuation lol
Leoi : Wed. is nov, 10 th. Why is Rivian a better bet than Lucid? And won’t Ford’s electric 150 be a competitor to their pick up truck? The Amazon backing is a plus, but how long will it take this company to fill that order and will it be constrained to fulfill it first? Just questions that occur to me besides the obvious co development and production risks to cost and schedule.
rppIg2As8t : Ok so everybody needs to read David trainers alternate take in this published today on SA. One of the 2 is very wrong . Time will tell.
151000008 : good