Rivian Automotive (RIVN) Stock News and Forecast: Rivian jumps over 20% to $123

Update November 12: After a stunning debut, the upbeat momentum around Rivian Automotive shares remains unabated, as the stock price gained another 22.10% to settle at $123. RIVN stock reached $125 at one point during Thursday’s trading. Holiday-thinned markets limited the upsurge in the electric truck maker after it registered the biggest IPO of this year on Wednesday. Its debut put Rivian’s valuation at $85.9 billion, outpacing the market caps of both Ford and General Motors.

Rivian Auto is charged up and ready to start trading on Wednesday, November 10, in what is sure to be one of the hottest IPOs in town. The stock is in the perfect hot space right now, that of electric vehicle (EV) manufacturers, with Tesla (TSLA) booming and EV cars becoming more and more mainstream. Rivian is slightly different as it targets the electric van or truck segment while also developing a sports utility vehicle the R1S and a truck, the R1T. 

Rivian (RIVN) stock news

The latest news from the investor roadshow last week is obviously positive as the IPO price range has been increased substantially from a previously guided range of $57 to $62 to now sit at a range of $72 to $74. Rivian is to sell 135 million class A common stock with an option for another 20.25 million. The number of outstanding shares after the offering will be 845,033,598, or 865,283,598 if the option is exercised by the underwriters. This will raise between $9.7 to $11.2 billion, if the option is taken up, using the midpoint reference price of $73. This will give a strong valuation of about $65 billion and put it in line with many mainstream automakers.

Interestingly, it puts Rivian close to the valuation of Ford (F) who is one of its backers along with Amazon (AMZN). Getting close to Amazon's valuation would take a bit more doing!

The shares are scheduled to price today and are due to begin trading tomorrow, according to the latest from Reuters. Reuters also adds that Amazon, T Rowe Price, Coatue Management, Franklin Templeton and Capital Research are some of the cornerstone investors and have indicated orders to buy up to $5 billion of the stock offering.  

Rivian's SEC filing on November 5 says: 

• "As of September 30, 2021, we produced 12 R1Ts and delivered 11 R1Ts, and as of October 31, 2021, we produced 180 R1Ts and delivered 156 R1Ts."
• "As of October 31, 2021, we had approximately 55,400 R1T and R1S preorders in the United States and Canada from customers who each paid a cancellable and fully refundable deposit of $1,000. Our commercial vehicles will initially consist of EDVs, and we plan to deliver 100,000 EDVs to Amazon by 2025."
• "We began deliveries of the R1T, our first production vehicle, to customers and generated revenue for the three months ended September 30, 2021."
• "For the years ended December 31, 2019 and 2020, we incurred net losses of $426 million and $1.0 billion, respectively, as we invested in product development and prepared for the initial launch of our vehicles in September 2021. As of June 30, 2021, our total amount of outstanding indebtedness was $3.0 million."

Previous updates

Update November 11:Rivian trades at $120.95 per share, up roughly 20% in its second trading day. The Nasdaq Composite is the best performer on a quiet Thursday, as the US celebrated Veterans Day. Equities were mixed as speculative interest remains concerned about higher prices putting the Fed between a rock and a hard place. 

Previous Update: Rivian opened at $106.75 a nice move for those long from the IPO price at $78. At the time of writing RIVN stock is pushing higher at $114.58.  Last indicating $120, still not opened.....Quotes for Rivian (RIVN) stock will open at 1010 EST with trading due to begin at 1020. When the quotes open it will give an indicative opening price before the real deal at 1020. The IPO was priced at $78. Interest in this one is huge so check in for more updates.

Update: Ahead of the IPO, market participants are expecting the company to offer 135 million shares at $72-74 a share, up from prior plans of $57-$62. The automaker is expected to raise more than $9.8 billion. Trading will begin on Wednesday on the Nasdaq exchange under the ticker symbol RIVN. The result could take its toll on TESLA shares, despite Rivian is not a direct competitor. 

Update November 10: Rivian Automotive (RIVN), the company backed by Amazon and Ford, gears up for its public listing on Wednesday, November 10. According to a person familiar with the matter, the electric vehicle maker priced its IPO on Tuesday at $78 a share vs. expectations of $72-$74 price range, bringing up the deal value at $66.5 billion. The company is set for a blockbuster IPO, in the face of optimistic production and growth targets.