Rivian went public at a valuation of 70 billion, raised 11.9 billion and took a valuation higher than Ford & GM at 90 billion.
Here’s why that’s insane.
They lost 398 million in 2019.
After that, they lost 982 million in 2020.
The company is promising electric delivery vans and pickup trucks, but so far doesn’t have any trucks actually sold.
They are saying the truck will be for sale in 2022, but already on a delay for this year.
Just to get an idea for how high they are valued, the biggest manufacturer of trucks globally is Daimler.
They have a market cap of 108 billion dollars currently.
Their 2020 revenue was 176 billion.
They made 4 billion in profit on that.
Rivian, a company which aspires to be in the same space is worth about 85% of what they are now, but hasn’t actually sold a single truck.
The only reason this is happening is there’s a massive bubble in electric cars now caused by a certain guy on Twitter.
Obviously Tesla has made some investors happy, but there’s the flip side, Nikola.
Nikola in the summer of 2020 peaked, with a market cap hitting about 38 billion.
Today, it stands at 4.7 billion.
No products being sold.
Massive developmental issues.
Likely fraud
Not saying Rivian is that bad, but there is a 180 on electric cars, where they still are part of the heavy cost, low margin, high competition and non recession proof car market.
This is obviously a bubble and really expect to see a crash.