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Discussion Starter · #6 ·
I put my deposit down on Sept 30th.. which just happens to be the offer cutoff day. Made it by 9hrs :)
8/31 for me. Though I almost configured a bunch of times over the last 2 years :)

I am totally ignorant of all things stock market.
Can the smart people here tell me the pros and cons of doing this?

thanks!
 

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I think many people are wondering about the stratospheric valuation given the solid but not stratospheric number of pre-orders and their current cash burn rate.

I think I will decline (i.e., not do anything in response to their email), and then do this:
Make a note of the high, soon post-IPO.
Buy in the inevitable adjustment period when their numbers don't support the valuation, which will go to below their post IPO high. As to the precise timing, who knows. One might still lose money if they don't deliver, but at least I won't have bought during the giddy period post-IPO.
 

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8/31 for me. Though I almost configured a bunch of times over the last 2 years :)

I am totally ignorant of all things stock market.
Can the smart people here tell me the pros and cons of doing this?

thanks!
You're essentially betting that the buzz around Rivian is strong enough to support an increase from the offering price. However, the anticipated valuation (the "guesstimate" of the value of the piece of Rivian that is being offered) is exceptionally high. The rumor is an $80B valuation for the company, which has already had $10B in investment from Ford, Amazon, T. Rowe Price and some smaller players. This is for a company that is losing a billion dollars this year. So you're gambling that investor confidence is so high that whatever the price is, it will continue to increase. The operative word is "gambling."
 

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While I think all the comments above are reasonable, replying to their email only means that a broker will contact you. Then you can evaluate the price range. I really don’t see the point of giving up the option value of buying in the IPO at this stage.
 

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Discussion Starter · #11 ·
Well with Rivian you do have to included Amazon delivery vans too. But yes, it is a high valuation.
I’ll wait to see what the price is. It does seem like we would get in before the excited first day roller coaster?
 

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Well with Rivian you do have to included Amazon delivery vans too. But yes, it is a high valuation.
I’ll wait to see what the price is. It does seem like we would get in before the excited first day roller coaster?
Yeah. And you can combine it with a stop-limit order to cap your losses if the price does go down. To be honest, I am looking at the long run. So I won't be trading based on short term volatility (but you can make money that way if you time your trade well).
 

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8/31 for me. Though I almost configured a bunch of times over the last 2 years :)

I am totally ignorant of all things stock market.
Can the smart people here tell me the pros and cons of doing this?

thanks!
One other thing. Although the guesstimate valuation is $80B, that doesn't mean that they're selling $80B worth of shares, it will only be a slice of the company (with R.J., Ford, Amazon, T.Rowe holding whatever ownership interest they will have as well as Rivian retaining a significant percentage). That slice is further divided between the general public and the 50,000 or so reservation holders (clearly not all participating) as well as employees and some others, so no single investor will get too big a chunk on day one.
 

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Doesn't look like Canadians can participate:
link asks you this before you can submit:
I confirm that I am a resident of the 50 United States, Puerto Rico, or U.S. Virgin Islands and that the above is my legal name as found on my social security card or driver’s license.
 

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The $80B valuation is troublesome as noted above with virtually zero production vehicles delivered to paying customers. There is also the matter of no peer manufacturers to compare Rivian to. The only pure EV manufacturer that's selling vehicles is Tesla and it's impossible to draw any conclusions based on their stock prices.

This could be a real "adventure" as Rivian is always referring to ;)
 

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Here's the email that went around:

Directed Share Program
At Rivian, our community is fundamental to everything we do, and we are deeply grateful for the interest and encouragement you have shown us since we started the company in 2009.

As you may know, Rivian has taken steps towards becoming a publicly traded company. We have heard from customers interested in purchasing shares as part of our proposed IPO, and we are writing to tell you we plan to offer a Directed Share Program. This means we intend to reserve a limited number of Rivian shares for eligible customers to purchase at the time of our proposed IPO.

The Directed Share Program (DSP) will be administered not by Rivian but by one of our underwriters (the “Program Administrator”). If you are eligible to participate in our DSP and successfully complete the pre-registration process, you will receive an email in the coming weeks from the Program Administrator with more information. Learn more about eligibility criteria and find answers to frequently asked questions here.

If you complete the pre-registration form now, you will not become obligated to purchase shares, nor are you guaranteed to receive an allocation of shares through the DSP. However, if you do not complete it by Monday, October 25, 2021, 11:59 PM PDT, you will not be able to participate and will not receive any more information related to the program. Once the pre-registration period expires, no additional submissions will be accepted.

A few important DSP details:
  • The DSP is available for customers residing in the United States who preordered an R1T or R1S by September 30, 2021 and who have not otherwise cancelled the preorder.
  • The number of shares available in the DSP is limited.
  • By submitting the pre-registration form, you consent to us sharing your contact information and responses with the Program Administrator. If you complete the pre-registration form by Monday, October 25, 2021, 11:59 PM PDT, you will receive information about the program directly from the Program Administrator. However, receiving this message and completing the form does not guarantee that you will be able to participate.
  • Due to regulatory requirements, this program is only available to eligible customers who reside in the United States.
  • If you are interested in participating in the DSP, please complete the pre-registration form now.
If you are not interested in participating in the DSP, no action is required.

- Team Rivian
 

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Here's the email that went around:

Directed Share Program
At Rivian, our community is fundamental to everything we do, and we are deeply grateful for the interest and encouragement you have shown us since we started the company in 2009.

As you may know, Rivian has taken steps towards becoming a publicly traded company. We have heard from customers interested in purchasing shares as part of our proposed IPO, and we are writing to tell you we plan to offer a Directed Share Program. This means we intend to reserve a limited number of Rivian shares for eligible customers to purchase at the time of our proposed IPO.

The Directed Share Program (DSP) will be administered not by Rivian but by one of our underwriters (the “Program Administrator”). If you are eligible to participate in our DSP and successfully complete the pre-registration process, you will receive an email in the coming weeks from the Program Administrator with more information. Learn more about eligibility criteria and find answers to frequently asked questions here.

If you complete the pre-registration form now, you will not become obligated to purchase shares, nor are you guaranteed to receive an allocation of shares through the DSP. However, if you do not complete it by Monday, October 25, 2021, 11:59 PM PDT, you will not be able to participate and will not receive any more information related to the program. Once the pre-registration period expires, no additional submissions will be accepted.

A few important DSP details:
  • The DSP is available for customers residing in the United States who preordered an R1T or R1S by September 30, 2021 and who have not otherwise cancelled the preorder.
  • The number of shares available in the DSP is limited.
  • By submitting the pre-registration form, you consent to us sharing your contact information and responses with the Program Administrator. If you complete the pre-registration form by Monday, October 25, 2021, 11:59 PM PDT, you will receive information about the program directly from the Program Administrator. However, receiving this message and completing the form does not guarantee that you will be able to participate.
  • Due to regulatory requirements, this program is only available to eligible customers who reside in the United States.
  • If you are interested in participating in the DSP, please complete the pre-registration form now.
If you are not interested in participating in the DSP, no action is required.

- Team Rivian
When they say that the "number of shares available in the DSP is limited" are they talking about for each person? Or the amount of shares total?
 
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