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This is a good article that delves into why Rivian would want to go public right now.

https://www.wglt.org/post/why-rivian-would-want-go-public#stream/0
It's an article about why they think Rivian should go public. I wouldn't necessarily call it a good reason.

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.
 

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The flip side of your argument is that if you wait, you get a smaller influx of funding and thus you can do less with it. I'd rather Rivian IPO now, take the extra 15-20B and invest it in more research, more design, more production, etc.

It's also hard to walk away from that kind of money, but I do think the day is coming where even tech companies aren't going to find their valuations quite so inflated. There's definitely a bit of FOMO floating around the market right now and it's a great time to IPO but it won't last forever.
 

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The flip side of your argument is that if you wait, you get a smaller influx of funding and thus you can do less with it. I'd rather Rivian IPO now, take the extra 15-20B and invest it in more research, more design, more production, etc.
I know it's a comedy show, but Silicon Valley (HBO) got a lot right, imo. They have a few episodes that go over the pitfalls of accepting too high of an evaluation. In one memorable scene, a CEO that is dealing with the consequences of over-valuation is asked "couldn't you have just asked for less money"? The CEO breaks down when he realizes "Yes, I could have just asked for less! OMG, why didn't I ask for less?" It was funny.
 

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CCIV has been on fire, and their entire run is due simply to being rumored to be merging with Lucid per Bloomberg Terminal (which admittedly has a good track record). It'll be even more interesting once (and if) a deal is announced.

Rivian going public via well-funded SPAC would, I believe, be an even better ride.
 

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It's not Rivian but if you're looking to invest in EVs you might want to keep a look out for Lucid. They're getting ready to go public soon.

Looks like Lucid is getting closer to going public.


(Reuters) - Luxury electric vehicle maker Lucid Motors Inc is getting close to a deal to go public at a roughly $12-billion valuation after veteran dealmaker Michael Klein’s blank-check acquisition firm launched a financing effort to back the transaction, people familiar with the matter said on Tuesday.

The merger between Lucid and Klein’s Churchill Capital IV Corp would be the biggest in a string of deals by electric vehicle makers such as Nikola Corp and Fisker Inc that have gone public by combining with special purpose acquisition companies (SPACs).

Churchill Capital IV has initiated talks with investors to raise more than $1 billion by selling shares in a private investment in public equity (PIPE) transaction for the deal with Lucid, the sources said. The size of the PIPE could reach $1.5 billion or more based on investor demand, one added.

These funds would be in addition to the $2 billion Churchill Capital IV raised in an initial public offering (IPO) in July on the New York Stock Exchange. Lucid and Klein agreed on the key terms of the deal, according to the sources.

If the PIPE fundraising concludes successfully, a deal could be announced as early as this month, according to the sources, who requested anonymity to discuss the confidential details. Churchill Capital IV declined to comment. Lucid did not immediately respond to a request for comment.
 

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CCIV has been on fire, and their entire run is due simply to being rumored to be merging with Lucid per Bloomberg Terminal (which admittedly has a good track record). It'll be even more interesting once (and if) a deal is announced.

Rivian going public via well-funded SPAC would, I believe, be an even better ride.
CCIV made some nice moves lately and still a great to get in efore this deal goes through.
Any guesses on how much the Lucid deal could push it up by?
1467
 

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Any guesses on how much the Lucid deal could push it up by?
I'd have never guessed at a near $60 valuation pre-LOI, so I'm tossing out any analysis other than "probably (much) higher", at least short term, and then again long term.
 

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Rivian has reportedly selected underwriters for their IPO.

 

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Good to see Tesla's stock price slowly recover over the last few weeks.
View attachment 2370
But this news along with general bear momentum could mean a bear week this week.

On the bright side, this month is a big one for Lucid Motors/CCIV
Another interesting article about the Tesla "Death Cross" the other day.

 

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Would the recent delivery delay that was announce affect Rivian's plans of going public? You'd have to think whatever plans they have would be put on hold for a little bit?
 

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Would the recent delivery delay that was announce affect Rivian's plans of going public? You'd have to think whatever plans they have would be put on hold for a little bit?
I highly doubt it.

Investors are so hungry for new energy assets to sink money into that Rivian could go right ahead with an IPO without worry. Delays might hurt the stock slightly in the short run but not by anything to lose sleep over considering how well established they are already as an automaker.
 

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I highly doubt it.

Investors are so hungry for new energy assets to sink money into that Rivian could go right ahead with an IPO without worry. Delays might hurt the stock slightly in the short run but not by anything to lose sleep over considering how well established they are already as an automaker.
Gotta MAKE something to be an automaker.
 
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