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Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Saturday, November 13, 2021

Rivian IPO Valuation and Tesla Comparison


Rivian is currently valued at approximately 110 billion USD without Rivian having any revenue.

Rivian is not worth more than 5 billion USD as Tesla is not worth more than 120 billion USD.

Rivian is a story stock based on the promise of green energy and electric vehicles. Much like Tesla.

Tesla, however, went public at a much lower market capitalisation. And Tesla's current market capitalisation at 1.05 trillion USD, makes Tesla Inc wildly overvalued.

Tesla is still not profitable. Tesla's technology, however, could help the electric vehicle pioneer sell itself for around 120 billion USD which is the current intrinsic value of Tesla, according to my humble opinion.

Rivian, however, does not even have revenue and Rivian is worth 110 billion USD currently. Yes, there are drug companies having done only experiments on a single world changing drug that have been valued at 1 billion USD. But Rivian's lack of revenue simply cannot explains a value of more than 5 billion USD. And the only reason I think Riviain could be worth as much is because of the large promise of electric cars.

Money creation or money printing as some analysts put it by the major central banks have distorted the prices of all assets. Pension plans administrators' unrealistic promises and commmitments to their pension money providers are making all asset managers chase unrealistic returns.

This greatest financial bubble in history will burst of course, but for the time being the stock markets going up party will go on for some more years, I think.

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