Rivian Automotive (NASDAQ:RIVN) When the electric pickup truck started mass production, the stock had already gone wild.
A.D. On November 10, the stock opened at $ 78. This brought Rivian $ 12 billion in cash, and their value rose in the first week of trading. On November 16, it reached $ 178 each.
When the company announced that it would no longer cooperate, its shares fell to the ground Ford Motor (NYSE:F.Still a 12% shareholder. Rivian shares closed at around $ 112 last week, a fall of more than 30%. But Rivian still has a market capitalization of nearly $ 100 billion.
The loser was a hundred-year-old Ford giant. As it grows its own electric vehicles, it now costs just $ 78.9 billion. Rivian’s depreciation plunged $ 3.6 billion from Ford Rivian.
Investors have come to believe that Rivian may take a different approach to electric car startups. Tesla (NASDAQ:TSLA) From finger to toe. The company produced 180 trucks in October and will put 1,000 on the road by the end of December.
More important is support Amazon (NASDAQ:AMZNOrdered 100,000 vans built on the Rivian platform and has a 20% stake. Rivian needs more flight customers.
It looks like a Rivian stock rocket, but it could easily fall, says our Chris Tyler. At current stock prices, each van is valued at over $ 1 million by Rivian. The value of the stock makes no sense.
What comes next?
To illustrate a little bit of the current value of RIVN stock, management must quickly move into larger production and higher sales. Early product models are reserved for Rivian employees.
Customers who have pre-ordered an R1T are being told to wait until March or the end of September. “Starter Edition” vehicles are 314 miles per charge, with a larger and 400-mile battery version planned.
Rivian is buying a second factory after opening the plant in Bloonton, Illinois. Georgia seems to be leading the way. The cost of that factory may have been slashed by Tesla and other companies that sell it to consumers.
Georgia must beat Illinois in negotiations. Samsung Electronics (OTCMKTS:SSNLF)) Rivian’s current battery maker, and with Rivian in a new factory. The rumored Samsung Factory will be located next to Rivian’s existing car factory.
Georgia is one hour south SK Innovation (OTCMKTS:SKOVF) A battery factory is being built in a commercial city. But Rivian eventually wants to make his own batteries, and the Illinois area could be a great fit for him.
Bottom line on RIVN stock
The battle against vegetation and distribution networks shows that Rivian Automotive is still in its infancy. Before the recent collapse of the RIVN stock market, there was a $ 100 billion start Volkswagen (OTCMKTS:VivagiAn established leader in electric vehicles.
The only word that expresses that assumption is bubble. Although Rivian is the best electric car out there, he still has to make sure he can produce a small amount and sell the results.
The last question is one that no one asks. How fast do customers get from Rivian to electric cars? Lucid Group (NASDAQ:LCID), Tesla, Volkswagen, Ford, General Motors (NYSE:G.M.) And everyone?
Before we know there is a demand, we will make sure the supply is for electricity. Any obstacle on that front would ruin the whole sector.
At the time of publication, Dana Blanchornhorn held a number of positions at AMZN. The opinions expressed in this article are those of the author, subject to InvestorPlace.com. Printing instructions.
Dana Blankenhorn He has been a financial and technology journalist since 1978. It has a collection of Kovid-19 stories just for the holidays At Amazon Kindle Store. Write it down firstname.lastname@example.org Or tweet it @Danablanconhorn. He writes for Substack newspaper, Facing the futureIt covers technology, marketing and politics.