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Here’s Whether Rivian Stock Is a Buy After the IPO

Read The Full Article On: Moneymorning

Rivian isn’t a household name yet, but it will be soon.

The company has been called the “Tesla Killer.” It was valued at $7 billion in December 2019 after receiving over $2.2 billion from startup investors. And that was before it received another $1.3 billion investment from T. Rowe Price Group Inc. (NASDAQ: TROW) in the same month.

T.Rowe Price isn’t the only big-name investor. Rivian has been given $700 million from Amazon.com Inc. (NASDAQ: AMZN) and $500 million from Ford Motor Co. (NYSE: F).

Because of those massive investments, retail investors are clamoring for their chance to get in on Rivian stock too.

No Rivian IPO date has been set, but it’s just a matter of time before this company goes public.

But before we get into whether Rivian stock will be a buy after the IPO, here’s how the firm became a multibillion-dollar powerhouse…

What Is Rivian? Behind the $2.2 Billion “Tesla Killer”

Rivian is an electric vehicle manufacturer, best known for its SUVs and pickup trucks.

The company was founded by Robert Scaringe in 2009, after he graduated from MIT. Just 11 years later, the company already has more than 1,000 employees.

Because it remains a private company, financial details are scarce.

We do know the company has massive potential.

Rivian’s most notable vehicle is the R1S. It’s an SUV meant to rival Tesla Inc.’s (NASDAQ: TSLA) Model X. The company claims the R1S can drive between 240 and 410 miles on a single charge. If true, that would significantly outpace the Model X’s range of 237 to 295 miles. Rivian’s version is expected to retail between $70,000 and $90,000.

While those expectations are promising, they are still just expectations. Rivian has yet to sell a single passenger vehicle.

So why does the company, and a potential IPO, have so much hype if it isn’t selling cars?

Jeff Bezos.

The world’s richest man and founder of Amazon visited the company’s headquarters in Michigan in the fall of 2019. After seeing its operations, he pledged to buy 100,000 of its vans for Amazon’s delivery services.

Delivery of these vehicles is expected in 2021. Amazon hopes to have 10,000 of the vehicles in operation by 2022. The full delivery of 100,000 electric vans isn’t expected until 2030.

Since then, speculation has run rampant about a potential IPO for Rivian stock.

But does all that hype mean that Rivian stock is a “Buy” after the IPO? Here’s the full answer…

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