Rivian (RIVN) is now listed on ThinkMarkets as a Share CFD
We have now listed Rivian Automotive as a share CFD on ThinkMarkets. To get started trading CFDs with us, all you need to do is create a ThinkMarkets CFD trading account and select Rivian in your ThinkTrader watchlist. What’s best about trading Rivian as a share CFD is that it lets you take advantage of both rising and falling prices -- if you think the price of Rivian Automotive is going to rise, you can go long, or if you think the price is going to decline in value, then you can short it.
Rivian Share CFDs are available on ThinkMarkets under the stock ticker RIVN.
Price of Rivian as of Wednesday November, 24th, 2021
So let’s take a closer look at Rivian Automotive and see what’s behind all the hype...
Biggest Wall Street IPO since Facebook
As the world pledges to wean itself away from a dependence on fossil fuels, Rivian Automotive looks set to cash in on the hype. Making its Wall Street debut late Tuesday Nov 10 (US time), Rivian is now officially one of the largest IPOs that the U.S. has seen in the past decade.
Not only did its shares surge as much as 53 per cent on the Nasdaq in its first few days, its debut also gave the electric vehicle maker a market valuation of more than $US100 billion.
Who is Rivian Automotive (RIVN)?
Founded in 2009, Rivian is an American electric vehicle automaker and automotive technology company created by CEO Robert “RJ” Scaringe. Originally known as Mainstream Motors, it was renamed to Avera Automotive before taking its current name, Rivian Automotive. Targeting the SUV, delivery van, and light truck market, its entry is the latest EV maker to tap into investor’s interest for the growing market.
As of Oct 30, Rivian employed 9,195 people and its prospectus details that it has a backlog of 55,400 pre-orders for its R1T and R1S EVs.
Rivian Automotive Makes its Debut on Nasdaq
Following a powerful debut on Nasdaq this week, Rivian now has a market cap which is higher than Ford and almost equal to that of General Motors. Unlike these companies, Rivian has the advantage of being first to market, as Ford plans to launch an electric version of its F-150 in 2022 and the Tesla Inc. Cybertruck not anticipated to enter production until 2022 with its highest volume coming to market in 2023.
The Rivian IPO follows similar moves by such companies as Airbnb and Uber which have set aside shares in their offerings for hosts and drivers. Its IPO comes as Rivian delivered its first vehicles, exclusively to its own employees, only a few months ago. In fact, 7% of Rivian’s IPO was allocated to its directed share program (DSP), including people who pre-ordered an electric truck or SUV. What sets Rivian’s DSP apart is that the EV company doesn’t actually have any customers as yet, despite a backlog of 55,400 pre-orders, as of October 31.
In terms of physical space, Rivian has a 2.6 million square foot facility for manufacturing in Normal, IL, and additional locations in Michigan, California, and England. Rivian’s first vehicles are expected to hit the market in late 2021 and 2022 with a price range in the $68,000 to over $74,000 mark.
Who backs Rivian Automotive?
Rivian has received a significant amount of venture capital finance over the years. Early investors in Rivian include Saudi conglomerate Abdul Latif Jameel Company which holds a 13% stake. The company has made other bets on clean technology, including electric air-taxi developer Joby Aviation Inc.
In addition, the Cox family, which owns Cox Automotive, will own approximately 5% of the Nasdaq debutante. The Bloomberg Billionaires Index it is estimated on the Bloomberg Billionaires Index that net worth of the family was at $38.6 billion in early 2021.
The former CEO of Amazon, Jeff Bezos, called Rivian’s founder, RJ Scaringe, “one of the greatest entrepreneurs”. Amazon led a $700 million investment in February 2019 and has ordered 100,000 electric delivery vans and expects to have its new Rivian-Amazon delivery vehicles on the road as early as 2022. Amazon also has a 19% stake in Rivian and it’s pertinent to note that its contract with Rivian prevents Amazon from purchasing another company’s delivery vans for 4 years until 2025. If Amazon fails to fulfill its sales obligations over two years, it has also agreed to reimburse development costs to Rivian.
Major conventional VC firms such as T. Rowe Price, Fidelity Management & Research, Soros Fund Management, Blackrock, and Baron Capital have also all made significant investments.
Can Rivian take on Tesla?
Rivian's IPO is set against a backdrop of the UN Climate Summit, where a raft of pledges have been made by policy makers and governments to cut greenhouse gas emissions from the global transport market. Rivian is clearly hedging its bets on the expectation that consumers will be prepared to shift rapidly to EV over the coming decade.
It’s important to note that within this climate, General Motors have also made it clear that they too aim to phase out production of their gas-powered vehicles by 2035.
Similar to Tesla, Electric-truckmaker Rivian is focused on developing a US-led nationwide charging network with plans to have 10,000 stations by the end of 2023. A majority of those in remote areas.
Rivian has also taken an AI approach to its vehicles, similar to Tesla, with investments based heavily in semi-autonomous driving technology, and hands-free. Tesla has even accused Rivian of stealing its trade secrets after hiring its former employees.
Whatever you believe the outcome may be, it is clear that Rivian Automotive will face strong competition from Tesla, as well as established auto manufacturers who have more experience with mass production of automobiles. Much will now depend on Rivian’s ability to scale up to meet orders.
Whatever the outcome is, no one can refute the fact that interest in the EV market is hotting up once again.
Advantages of trading Rivian as a Share CFD?
There are plenty of advantages of trading Rivian as a Share CFD, as opposed to buying the physical share on Nasdaq.
- Go long or short Rivian - CFDs let you trade on both rising and falling markets. If you think Rivian will increase in price then you can go long. If you think Rivian will drop in price after its IPO, CFDs let you short the share and profit on its decrease in price.
- Make your capital go further - CFDs give you the benefit of trading with margin which provides you with leverage. This means that you are able to trade without putting down the full value of a position. The benefit for you is that your money is then not tied up in one transaction, and you can use it for other investments.
- Hedge your physical share portfolio - Let’s say you own a physical share that you plan on holding over a long term period. If you believe that the market is set for a downturn in the near term, you can offset any potential losses by opening a short position using share CFDs.
How to trade Rivian as a Share CFD?
To get started trading Rivian as a Share CFD, all you need to do is follow these 4 steps to get started trading:
- Download the ThinkTrader app
- Create a new trading account
- Deposit funds
- Select Rivian and start trading.
It’s that easy.
What are you waiting for? You can trade Rivian Share CFDs with ThinkMarkets today!