Rivian: Is the Valuation Justifiable?
Rivian (NASDAQ: RIVN) made stock market history when its valuation topped $100 billion just days after its IPO. While that alone makes it one of the richest debuts ever, what's truly unique about the electric vehicle specialist is that the company has no material revenue to speak of.
Though Rivian bulls are excited by Amazon's order for 100,000 delivery vans from the company, it had only delivered a handful of R1Ts, a passenger pickup truck and its first production vehicle, as of the end of the third quarter. With production and deliveries just starting to ramp up, Rivian's valuation north of $100 billion requires a leap of faith from investors.
In fact, to justify that figure, you have to make three key assumptions.
Source Fool.com
