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80 Billion Dollar Question.....

3K views 19 replies 7 participants last post by  Mr. Gee 
ive been in venture and investment banking for a decade. Been watching Rivian for last 5 years. Preordered 10/20.

the shortest answer is …. yes, influx 40B or whatever the actual close is. But there is money going right back out to serve debt, prior share holders and cost of IPO. They will start a new balance sheet strategy to immediately find new loans and improve valuation for opening in market. Creditors and shareholders will have a huge influence where the cash goes. in other words, no pile of cash sitting in a rivian vault. All proceeds will be distributed to the next company stage where likely little will be in ’cash’.

If you’re asking how much spending capital they will send out the door- who knows?!!

they re eyeing several major cap expenditures like new plants (1-2B each). That’s one spending place.

I’m sure others on this forum can point to the next big capital plans.

car manufacturing is a beast of a business, almost always behind on production, sales, inventory, parts and service. A ton of capital, in the billions, is needed just to float to the next ‘profitable quarter’.

it’s not tech. Build cheapish code, get customers, get billions cash in your bank for real.
Welcome to the forum! Would love to get your take on how Rivian's stock could perform.
 
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