Looks like the stock is taking a pounding today.
Any guesses on where it lands?
Are we headed to sub-IPO territory...
Any guesses on where it lands?
Are we headed to sub-IPO territory...
I guess I'm greedy thought because I feel like I might buy-in if it goes below $78 🤑Are we headed to sub-IPO territory...
There were a couple of times I thought the same thing but fortunately I didn't either. I have a feeling it's going to be a bit more up and down like this until Rivian actually starts ramping up production.Yikes! Literally a week ago I posted something speculating that maybe it was finally time to buy in for those of us that hadn't gotten in at the IPO. The stock was steady then at ~$113.
I've never been more grateful for my lack of follow-through!
Agreed. I missed the boat the first time, but this could be a great opportunity.I guess I'm greedy thought because I feel like I might buy-in if it goes below $78 🤑
I did the same.Bought some more RIVN when it hit $94.59 this morning, fingers crossed![]()
I got in with a limit order of 95. I hope back above 100 next week.I did the same.
They have some subscription models that maybe profitable that you can try to add to your model. FleetOS is subscription, data plan for the car, and some chargers will also charge non-Rivian cars for a fee. Plus, all my shirts and hoodies from the gear store /sA few simple math calculations will give us a rough idea of what Rivian stock price should be.
Assume it’s the year 2026 and both the Illinois and Georgia plants are running at full capacity. This yields a production of 200,000 + 400,000 = 600,000 cars per year. Assume each car produced and sold will yield a profit of $10,000 for Riven for a total annual profit of 600,000 x $10,000 = $6 billion.
Rivian has about 890 million common shares outstanding. (Assumes all options, warrants, conversions, etc. are exercised.) $6 billion divided by 890 million shares = a potential max profit per share in 2026 of about $6.74 per share. If we then give Rivian a generous price earnings ratio of 20 (Remember, it’s a car company – it’s not Apple Computer), then a share price in 2026 should be about $134.83. If we discount this by a 10% per year for expected appreciation from 2021 to 2026, then this future price of $134.82 has to be multiplied by 0.621 to get a current price.
$134.83 x 0.621 yields a current stock price of a little under $84 per share. You can substitute other estimated numbers to see what you come up with, but it would appear that the current stock price is overvalued – and this assumes everything goes OK for the next few years.
As for investing in the electric car field, I prefer the electric utility companies. They pay dividends now, and guess who is going to be generating and selling the electricity for all those charging sessions?
Buying their stock on the open market isn't really investing in Rivian directly, they got their money from the IPO, stock goes to $50 or $500.... The money doesn't change. You do more by buying their products to support them (hard to do since they haven't been delivering). Guess if the stock goes up because of the demand of your stock purchases and their increase in stock price helps them with a follow-on it helps but they already have $20B in cash and a follow-on is at least a year away.I think of investing in Rivian right now as a donation to the planet, not an investment. It's the only car on the market that can compete with Range Rover, and they're polluting pigs. Sorry, but the guy who buys a Rivian is not the same guy who buys a Tesla wing doored minivan. The primise of this SUV has kept me from buying a diesel Suburban, which is the only other fuel efficient bod on frame-ish SUV on the market right now. If I want to make money on an investment I'm not the type to speculate. Especially in a high inflation environment with significant short-term uncertainty.
Aha! What to watch for a buy in signal.