I've never participated in an IPO so please forgive my ignorance regarding the following questions:
We know Rivian has been valuated at $80 Billion, so let's say 50% of the company will be put up in the IPO stock offering...
If everything goes perfect and according to plan and the stock sells for the initial ask price.. does Rivian actually get a $40 Billion infusion?
They're issuing more like $8B in shares. The money goes to the company for expansion (they're adding a US plant and possibly Europe) and operating expenses until they get to profitability.
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.
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.
I guess I just can't seem to get past that $80 Billion valuation? Isn't it investment banker/banks that determine the valuation number?
Someone believes Rivian is worth $80B!!
I guess I just can't seem to get past that $80 Billion valuation? Isn't it investment banker/banks that determine the valuation number?
Someone believes Rivian is worth $80B!!
true. It’s mind blowing. this quarter has been the largest PE transaction by volume and price in recent history. It’s a trend is my point. It may mean I get an RS1 so that would be cool. Rivian has made some amazing executions heading to this point, my opinion is it’s still early, but if the market buyers want in- do it. Get that money.
As of time of posting Lucid's value is 61.3B valuation (up 39% from yesterday) , guess the rivian target of an 80B valuation isnt that far fetched. As far as i know $LCID doesnt have any van orders/contract with amazon
The most recent article I've seen notes that Lucid has 13,000 preorders, well below the number of R1T and R1S orders (48,390 as of the most recent filing) and then of course there are the 100,000 Amazon vans.
I'd be curious to know if anyone has done any research on the potential value of any of their IP (LINK) or if the existance of certain IP might indicate future product offerings beyond the R1T, R1S and van models being built for Amazon that might offer more mass market appeal. Also, beyond the current vehicle lineup are they also acting as a supplier of product/software/etc. which would provide an additional source of revenue?
They've trademarked R1 through 5 of the RxT and RxS family. They mentioned that smaller versions of the vehicles were in development but no mention beyond that.
Tesla Inc. can move forward with a lawsuit claiming that Rivian Automotive Inc. stole its trade secrets with the help of former employees of the electric carmaker.
www.bloomberg.com
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