Talking stocks, trading, and investing in general

Rivian stock under $10... even if they do terribly, they're going to get bought by an OEM, no?

Why not just buy it out of BK then instead of paying market price or higher?

venividivicibj said:

Rivian stock under $10... even if they do terribly, they're going to get bought by an OEM, no?

Click to expand...

Rivian's market cap is still $9B. There are only a handful of potential acquirers and when you look at their market caps, very few would pay that much, let alone significantly more.

Assuming that market cap info is correct, here's who I have as remotely potential acquirers:
1. Stellantis - ~$80B
2. Honda - $60B
3. GM - ~$50B
4. Ford - ~$50B

Even among those, GM now is heavily invested in whatever "Ultium" is and Ford has an operating history with EVs.

As a lay person, I think Stellantis has the most to gain and would by far make the most sense as an acquirer but I can't see them paying $10B, let alone well north of that. The real question is whether Rivian's IP is actually that meaningful or if it's just a "brand."

It's also possible that BYD, Tata or some other foreign business I'm unfamiliar with buys Rivian, as they have been the ones most likely to buy small struggling brands, but that seems more remote to me at this point.

I don't think Rivian is going out of business at this point but I don't see the risk-reward behind their stock right now. If they crush it for the next 5 years a sane valuation might be $25B+. The downside is obvious if they don't.

I'm starting to see a lot of rivians in the road in these here parts, and I think they look pretty good.

The newer generation isn’t much sharper.