Now I will have to tap on my savings to invest this 😂. If they are priced at 50 billion in an IPO by the end of the year is close to 100% increase of how they were priced in an investment round in January! And that would put them above Ford.
I agree that it is not rock solid evidence. But the article is from Bloomberg and they tend to be good on these sort of news. And they just say that Rivian is looking at it. Which let us be honest, it is not much. At this point they should definitely being considering if it would make financial sense or not (which includes going around and asking bankers).I dislike articles like this. They provide zero evidence — just the dubious “people familiar with the matter“.
That further makes my point. The article is a big nothing-burger. There is no substance. The whole thing is basically “Company contemplates maybe or maybe not doing company things.”I agree that it is not rock solid evidence. But the article is from Bloomberg and they tend to be good on these sort of news. And they just say that Rivian is looking at it. Which let us be honest, it is not much. At this point they should definitely being considering if it would make financial sense or not (which includes going around and asking bankers).
Agreed, they do good reporting and I'm sure they've done their diligence, besides. No one from Rivian or any banker they've spoken will go on record and say "yeah they're totally doing this here's the paperwork to prove it."I agree that it is not rock solid evidence. But the article is from Bloomberg and they tend to be good on these sort of news. And they just say that Rivian is looking at it. Which let us be honest, it is not much. At this point they should definitely being considering if it would make financial sense or not (which includes going around and asking bankers).
An SPAC is understood to be an easier start, like what a couple other new EV automakers have done recently. I wonder if it will actually be an IPO or SPAC when we finally get official info.I agree that it is not rock solid evidence. But the article is from Bloomberg and they tend to be good on these sort of news. And they just say that Rivian is looking at it. Which let us be honest, it is not much. At this point they should definitely being considering if it would make financial sense or not (which includes going around and asking bankers).
Thanks for pointing that out. Info reported to the SEC is indeed a good start.Until the S1 shows up, it's all speculation.
I think Tesla is just a car company. SpaceX, Starlink and Solarcity are separate companies not owned by Tesla and thereby don't contribute to Tesla's revenue. The valuation of Tesla is what the market seems to think Tesla will become, i.e. by far the biggest automobile company in the world.There's also, to a very limited degree, internal pressure that gets applied when a company reaches a stage where IPO is feasible and clearly profitable. I can't speak to Rivian but I've been through two startup sales, an IPO and am working for a company now which will eventually IPO. Having had ownership stakes or options in each of these, I've watched what happens when enough employees have been given options (especially higher level execs) and the market is clearly prepared for your company to IPO. The internal pressure ratchets up a fair bit and it takes a strong executive team to not cave to that and move before they are ready.
I totally agree with everything the previous post contained. The timing is perfect for them to do this now, and Rivian likely isn't actually worth the valuation they're looking at (though it's not totally unreasonable if they can prove they'll capture a significant portion of their market). Tesla has so much value because Tesla is more than Tesla, it's SpaceX and Starlink and Solarcity (did they ever rename that part of the business?) and other things that combine to make it (potentially) worth 800B. Tesla as a car company is not now nor never will be making the kind of revenue off car sales that would drive an 800B valuation.
Thanks for the Info. SolarCity doesn't seem to be a big revenue company but who knows what will be. As to SpaceX, there are business transactions with Tesla (Musk being the common link) but the amounts are insignificant.![]()
Here's how Tesla and SpaceX worked with and paid each other in the past year
Among other ways the companies work together, and pay each other, a new filing reveals that SpaceX bought $600,000 worth of Tesla car parts in the first quarter of 2020 alone.www.cnbc.com
SpaceX owns Starlink.
Tesla acquired SolarCity in 2016.
So yes, all three of these contribute to the valuation of Tesla.
EDIT: Also - I simply refuse to believe that Tesla as a standalone car company is more than what every other car company on the planet combined is worth. That's just ridiculous. Ford Motors has never had a market cap over 45B. Tesla is really 20x bigger than FMC in the future? I doubt it.
Even Elon has admitted that Tesla is over-valued, right now.EDIT: Also - I simply refuse to believe that Tesla as a standalone car company is more than what every other car company on the planet combined is worth. That's just ridiculous. Ford Motors has never had a market cap over 45B. Tesla is really 20x bigger than FMC in the future? I doubt it.
Its expected during a time when major shifts are happening and will take time to settle down to a more normal pace. As more automakers enter the EV market, I expect Tesla stock gradually lower. But who knows, maybe something will see it crashing.Tesla valuation has nothing to do with Space X, but the solar is part of Tesla. If Tesla is successful in reducing cost of the solar roofs it's a game changer pretty much as the electric car itself. And then there's the self driving technology.
So basically Tesla valuation is a combination of different possible breakthroughs. Mostly solar, self driving and manufacturing.
With that said, I also think it is overvalued. But in a world where dogecoin is worth $8 billion dollars, is it bizarre that Tesla is worth $800?
That was in May when Tesla's stock price was around $150 (adjusted for stock split). Now it's around $800 and between those times the stock has been diluted by issuing new stock to raise capital (and probably also stock options to employees). So in the beginning of May the company was valued at around $140B compared to near $800B today. I haven't heard Musk complain lately about the high price.Even Elon has admitted that Tesla is over-valued, right now.
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