Rivian Automotive Share Forecast November 2021 – Time to Buy RIVN?

Shares of American electric vehicle automaker Rivian Automotive (NASDAQ: RIVN) closed at $100.73 after making a thunderous stock market debut on Wednesday. Currently, the shares are up some 29% at the time of writing. The opening price on the stock exchange was $106.75, 37% higher than the $78 IPO price as Rivian enjoyed a successful debut.

Rivian Automotive – Technical Analysis

Rivian’s IPO was priced at $78 per share for 153 million shares. Rivian’s initial valuation became $77 billion after its IPO raised $11.9 billion. At the time of writing, its total assets and debt stand at $4.602 billion and $176 million respectively.

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Recent Developments

Rivian was founded by CEO RJ Scaringe in 2009 and has plans to launch a wide array of EV models over the next several months. It raised capital of US$2.85 billion during 2019, through four major investments. These include a US$500 million investment by Ford in April and $1.3 billion investment round led by T Rowe Price.

Rivian rolled out the R1T pickup, its first EV at a premium price of $67,500 back in September. By following a premium pricing model mimicking that of Tesla, it intends to roll out the R1S, an SUV priced at $70,000. The company is also planning on building a delivery vehicle by partnering with Amazon by the end of the year.

Last month, Rivian received regulatory approval by the Environmental Protection Agency and the California Air Resources Board, allowing them to sell and deliver both its R1T pickup truck and R1S SUV in all 50 U.S. states. Amazon has ordered 100,000 of Rivian’s electric vans which are more likely to be revenue drivers in the near term. Amazon has a 20% stake in Rivian. In an October 1^st filing, Rivian announced its IPO details and also indicated that plans to launch and begin deliveries for the R1S.

Rivian has also introduced a membership program as the production of its EVs ramps up.  It will provide Rivian owners access to complimentary charging at its soon-to-be-built Adventure Network and Waypoints chargers. Rivian has also established telematic-based insurance capable of managing customer sales, service and renewals.

Rivian relies on earned and shared media instead of traditional advertising. Manufacturing complex vehicles can be enormously challenging and prone to costly delays for Rivian. It has already delayed the R1T twice because of the pandemic. It must also navigate the various hurdles presented by the semiconductor shortages and supply chain disruptions.

Should You Buy RIVN Shares?

Retail investors piled into Rivian’s IPO debut when the shares soared as mentions across social media platforms increased. It became Wednesday’s most traded stock with about 46,000 buy orders from customers. To compare it with its peers, it is triple the demand for recent retail-favorites Lucid Group Inc. and Ford Motor Co. combined and double the number of Tesla Inc. purchases. Rivian’s symbol became the most trending stock on Stocktwits with mentions on Reddit’s WallStreetBets rivaling those of AMD Inc. and Nvidia Corp. Its opening surge was the biggest US IPO in a while.

Rivian, along with Lucid Group Inc. and Nikola Corp., are companies that have yet to generate sales despite having massive valuations. That may weigh-in on the performance of the stock as the median return for sales-less companies in the Nasdaq Composite over the last six months was a 20% loss.  That being said, the positives outweigh the negatives, and you can go for RIVN shares at the moment.

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