Please ensure Javascript is enabled for purposes of website accessibility

1 Great EV Company You Can't Invest in Yet

By Matthew Frankel, CFP® and Jason Hall – May 15, 2021 at 7:16AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This electric vehicle company is extremely promising, but isn't on the public markets just yet.

Rivian is one of the most promising electric vehicle start-ups, with agreements to produce electric vehicles for Amazon and other high-value customers. And while Rivian isn't a publicly traded company just yet, it's certainly worth keeping an eye on, as Fool.com contributor Jason Hall discusses in this Fool Live video clip, recorded on April 28, with fellow contributor Matt Frankel, CFP, and Chief Growth Officer Anand Chokkavelu.

Anand Chokkavelu: This one's really interesting. Unfortunately, it's private at this point, it's Rivian. Jason is going to tell us about it. Its market cap is $28 billion, but it's expected IPO later this year or in 2022 at $50 billion or more. I'm not sure on the sales, Jason might know if it's actually been I couldn't find a reliable figure.

Jason Hall: There's not really a reliable figure right now.

Chokkavelu: I found a figure. Not reliable.

Hall: Rivian is interesting and it's definitely one that I think is pretty topical. At least it was a couple of months ago when it came out that the expectation that the company was going to IPO. Back in February, I think everybody was expecting it was going to IPO super-duper soon and that seems less and less clear. The company hasn't been anything like open with what their plans are, but we did see a valuation round that was $27.5 billion, about $28 billion, so that's where we get that value there. But in the end, expectations, this is a company that's going to be able to potentially go public for $50 billion. Rivian, their truck is like one of the big products that they are talking about. It seems like there's a lot of interest in trucks, so Rivian is one. I think Lucid is working on a truck there, but you think about pickup sales, especially in North America, two of the best-selling vehicles are the Ford F-Series and the GMC Sierra Chevy Silverado. That's something that's really become heavily tied to Rivian right now. I don't really know what else to say about the company, guys. It's another one that's interesting that's got a lot of things that seem to be compelling, but it's still so early in its story.

Chokkavelu: The most compelling thing for me is just that it's the Amazon one.

Hall: Amazon, who else has invested in it?

Chokkavelu: Ford.

Hall: Ford has a big stake.

Chokkavelu: It's customer investors, right?

Hall: Right.

Chokkavelu: Little investors.

Hall: It's not just the big investment. I think Rivian's vans. I think that Amazon is looking to deploy, nobody is saying exactly, but the expectation is they're going to deploy a couple of thousand Rivian vans for delivery.

Frankel: 100,000 by 2030.

Hall: OK, 100,000. A couple of thousand.

Frankel: 10,000 in 2022, 100,000 by 2030.

Hall: Big number.

Frankel: Yeah.

Chokkavelu: A million by the year 3,000.

Hall: A billion. Everybody gets a delivery truck.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anand Chokkavelu, CFA owns shares of Amazon. Jason Hall owns shares of Amazon and Ford. Matthew Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ford Motor Company Stock Quote
Ford Motor Company
F
$11.20 (-2.35%) $0.27
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$113.00 (-1.57%) $-1.80

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.