Rivian’s planned initial public offering at an $80 billion valuation will dwarf the size of any EV firm. The electric vehicle giant has potential. Amazon (NASDAQ:AMZN) and Ford (NYSE:F) invested in the firm early on. Plus, Rivian is positioned to sell its vehicle across the U.S.
Rivian’s EV is fully certified by NHTSA, EPA, and CARB. Since it is preparing to sell in all 50 states, the market supports its valuation. Investors could continue holding Tesla (NASDAQ:TSLA) instead. Nio (NYSE:NIO) and XPeng (NASDAQ:XPEV) are still dominant players in China. And Fisker (NYSE:FSR) and Lucid Motors (NASDAQ:LCID) are on the verge of selling their first EV.
A rally in Rivian stock after its IPO would lift all EV stocks. Investors would rush to buy on the positive momentum, selling GM and Ford stock.
Conversely, a flop after the IPO would shake the market’s confidence in EV stocks. NIO and XPeng are at risk of selling because of the continued risks in China. China keeps imposing new regulations to protect consumers and weaken corporate power.
LCID and FSR stock are at higher risks because they do not have production-ready for the market. Post-launch, costs will exceed revenue. Speculators tired of holding companies losing money would sell both stocks.
