It's an article about why they think Rivian should go public. I wouldn't necessarily call it a good reason.This is a good article that delves into why Rivian would want to go public right now.
The gist of their argument is:
“The reason why you may want to consider going to the public market right now, is the market is pricing you like a technology company, not like a car company,” said Jaime Peters, assistant professor of accounting and financial services at Illinois Wesleyan University in Bloomington. “And that’s probably gonna last as long as Elon Musk continues to waive that magic wand he has and convince people that Tesla is worth that much money.”
Well, there are two possible scenarios:
1. EV startups continue to be priced as tech companies.
2. EV startups stop being priced as tech companies.
Now, under scenario #1, there is little-to-no advantage for Rivian IPOing now. If they IPO, they have that massive distraction to worry about, and could potentially lose control over their direction. They can keep control and focus on their objectives, and IPO at a later date without losing that "tech halo".
Under scenario #2, the assertion seems to be "better get your IPO money, now, because valuations are going down, at some point". If you want a money-grab then let the company fail, sure, that's great. But if you're Rivian and you want to stick around and be successful, isn't that a bad thing? Wouldn't it be better to delay your IPO and come in at realistic valuations (based on what the market will bear, long-term) so you can meet/exceed projections and not worry about things like bankruptcy or shareholders voting out all the management?
No matter how I look at this, waiting seems like the better play to me. Granted, I have no insider info from Rivian... So maybe there are factors at play that I'm not aware of? But I am on an equal footing to most of these so called "journalists" and they're writing for clicks and ad revenue -- not for truth.