The Rivian electric truck can be seen parked near the Nasdaq Market Site Building in Times Square on November 10, 2021 in New York City.
Michael M. Santiago | Getty Images
Rajiv Patel, an environmental consultant in Austin, Texas, Rivian Electric SUV Earlier this year. He doesn’t know when to get his car called the R1S, but the down payment is rewarded in a completely different way.
As a pre-order customer, Patel was able to participate in Rivian’s IPO as part of its direct equity program on Tuesday night. He bought up to 175 shares at an IPO price of $ 78 for $ 13,650.later Stock price soars 29% On Wednesday, Patel’s stock is currently worth $ 17,628.
“When I invest in these companies, I’m always a long-lasting person,” said 45-year-old Patel. Tesla Shortly after the 2010 IPO Lucid Motors,went public In July. “I’m definitely not a memestock guy. With these three, I’m happy with the technology.”
Technology is everything Patel can currently bet on. After Nasdaq’s debut on Wednesday, Rivian has a market capitalization of $ 86 billion. Ford Almost equal to General MotorsAlthough the company forecasts revenue of $ 0 to $ 1 million in the third quarter.
Rivian has booked up to 7% of its IPO shares for DSP participants, as the company stated in it. Prospectus.. Eligible investors were divided into two categories: those who booked R1S or R1T electric trucks as of September 30, and company executives, directors, and their affiliates. The deposit will be refunded.
The program follows a similar behavior Airbnb, Uber When DoximitySet aside the share of their offer for host, driver When doctor, Each. What makes Rivian’s DSP stand out is that as of October 31, the EV company still has no real customers, despite a backlog of 55,400 pre-orders.
Assuming that the DSP has allocated all available shares, participants have invested a total of approximately $ 835 million in Rivian shares. As of Wednesday’s closing price, these stocks totaled close to $ 1.08 billion, equivalent to a paper profit of approximately $ 245 million.
Joshua WhiteA finance professor at Vanderbilt University said hot IPO stocks most often enjoyed the first day of pop, and individual investors are usually locked out, which can be a daunting task for those who can attend. DSP investors are not subject to the post-IPO lockup period and can also sell immediately if they choose.
“You know that participating in this can be a pretty good lover deal for sign-up customers,” said White, a former Securities and Exchange Commission economist. “I don’t have the product, so it’s a way to extend the goodwill in advance so that I can confirm the return immediately.”
Patel received his first email about Rivian’s DSP last month and was told he had to pre-register by October 25th. The program was being run by. Morgan Stanley, IPO lead manager.
After arrival Price is $ 78 At the end of Tuesday, Patel was able to access Morgan Stanley’s account and select up to 175 shares as needed. He chose the maximum amount and sent it.
While Patel is a big fan of Tesla, he said the Rivian R1S will be his first electric car, but he doesn’t know when it will arrive. Rivian said it plans to deliver unprocessed vehicles by the end of 2023.Meanwhile, the company AmazonOrdered 100,000 deliveries by 2030, including 10,000 as early as next year.
Patel, who has two children, is happy to wait for a Rivian SUV.
“SUVs are much more functional than Ys and Xs because we have a family with two young children,” Patel said, referring to Tesla’s car. He also deposited a refundable deposit on the Lucido car, “but I think I’m completely committed to Rivian at this point,” Patel said.
When it comes to his investment, he focuses primarily on clean tech companies. But he admitted last year that he missed the 2021 rally and sold Tesla shares.
“I had to buy a house,” Patel said. “But Austin’s housing market is great, so I have no regrets.”
Correction: In previous versions of this story, Tesla’s vehicle seating was incorrect. The number has been deleted.
Rivian pre-order customers have made over $ 240 million in IPO pop profits
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