Rivian is currently valued at approximately 125 billion USD by public stock markets. Tesla's market cap is 1.04 trillion USD.
Both Rivian and Tesla are heavily overvalued. In my opinion, Rivian is not worth more than 5 billion USD, while Tesla's intrinsic value is around 120 billion USD.
Rivian does not even have revenue! The investment bankers that underwrote and successfully sold the Rivian shares to institutional investors at the IPO have done something very extraordinary. Apparently, the hunger for the electric vehicles' story after Tesla's stock price meteoric rise is tremendous.
Electric mobility will indeed take a large market share of the current combustion engine dominated cars and other vehicles market, but I think electric vehicles' market share will be far less than the market seems to be pricing in both Tesla's and Rivian's market capitalisation.
No comments:
Post a Comment