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Tesla is valued at 10 times that, and if you subscribe to the old-auto-industry-having-problems-to-compete-with-Tesla hypothesis, then Rivian has the potential
by strulovich 5y ago
Tesla is valued at 10 times that, and if you subscribe to the old-auto-industry-having-problems-to-compete-with-Tesla hypothesis, then Rivian has the potential to become another dominant car company in the market. It’s clearly a bet, but it’s not a disconnected from reality bet. In fact, in a world where tesla already pulled it off, it sounds more grounded than the Tesla story.
- justicezyx 5y agoTesla was the only one who "old-auto-industry-having-problems-to-compete-with-Tesla", the market space is not infinite. Now Rivian is certainly one who "old-auto-industry-having-problems-to-compete-with-Tesla", but there is another who can supposedly do it better? If Blueorigin cannot catch up SpaceX, there is no reason to believe Rivian can share the same market standing as Tesla.
- ricardobeat 5y agoTesla’s market cap was $60B just two years ago, before model 3 production really ramped up, and the crazy stock bubble began. By that point, it’s first production car was a decade old, and the company was on the verge of hitting 1 million vehicles produced (March 2020). So yeah, $80B for a competitor in the pre-production stage seems quite steep.
- postingawayonhn 5y agoTesla's market cap was not tied to the number of cars it was shipping at any specific point but rather how much confidence investors had in their ability to execute on their plans and scale up in the future. When you look at Rivain's team + product + funding I think it's not unreasonable to have a high level of confidence in their ability to execute.