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> They will build/sell 1000 cars this year! They should be doing that every day for this kind of evaluation. This sort of statement doesn't really make sense.
by eigenspace 5y ago
> They will build/sell 1000 cars this year! They should be doing that every day for this kind of evaluation.
This sort of statement doesn't really make sense. Investors don't invest based on how a company is operating today. At that point, it's basically too late. They invest based on how they believe the company will be doing in the future.
Personally, I'm agnostic about the future of Rivian, and suspect this valuation is probably way too high, but I definitely don't think that because of their current production numbers.
- mym1990 5y agoDon't you need to take into account current conditions to forecast into the future? Unless there is some silver bullet information or wild speculation, predicting future financial states needs some basis to stand on.
- eigenspace 5y agoSure it plays a role, but mostly only in mature businesses. But that's clearly not a factor in many other investments. If you truly believe that an immature business like Rivian will explosively grow, then you'd be an idiot to wait for that growth to happen before investing. You'd just be leaving money on the table. Of course, we don't know for sure what'll happen with Rivian, but clearly some people with money have some strong beliefs.
- kgwgk 5y agoSome people with money are buying cryptographic keys with a tenuous connection to digital images of rocks and whatnot. What a time to be alive.