Rivian Is Poised To Be the Best Investment of 2021

It is not often that an initial public offering (IPO) interests me. Most of the time there is a lot of initial hype which just drives the stock price to the moon, only to come crashing down to reality at some point in the not so distant future.

And really, that's the best time to buy. When the calm arrives and the stock starts trading closer to its true value.

But Rivian, an electric car company, is one that appeals to me, and I actually think that Rivian has the future potential to become a leader in the electric vehicle market even overtaking the mighty Tesla in not only market cap, but in consumer interest and enthusiasm as well.

The stock began trading on the Nasdaq today under ticker symbol RIVN, and IPO'd at $78 to open in the market at just under $107. It closed trading at just over $100 per share.

I had a limit order in at $85, taking the gamble that it would pull back toward the close closer to its IPO price. But it never went down that far and so as we speak I do not own any shares of Rivian.

But I will. My investment interest in the company is anywhere between $5,000-$10,000, which I intend to accumulate over the next six or so months.

There are a variety of reasons why I think Rivian has the goods, so to speak, and why it is better than Tesla.

For one, it has interest from two major companies—Ford Motor Company owns 12%, and Amazon owns 20%. On top of that, Amazon has already placed an order for 100,000 Rivian electric delivery vehicles, the first 10,000 of which are expected to be delivered by the end of 2022 with the remaining 90,000 being delivered by 2030.

If you think that Rivian cannot deliver on this order, think again. Its Illinois production facility alone has the capacity to produce 150,000 vehicles a year. Rivian already has several production facilities and says it can produce up to a million new vehicles a year before 2030.

I think that very quickly Rivian will have the ability to fill orders much faster than Tesla was in the beginning, and this will bode well for the company, its investors, and the consumer who will want their vehicles.

Rivian opened its doors in 2009.

Another reason I like the company is the product that it offers. It is starting off with the primary vehicles that are in high consumer demand right now. Trucks and SUV's, both of which Rivian offers.

They have their pickup truck, the R1T, and what I think has even more appeal than that, the R1S which kind of looks like a Bronco.

Perhaps Ford Motor Company had something to do with this very appealing design.

I actually think that the R1S will outsell the R1T. But if Ford has anything to do with it, with the success of the Ford Lightning which looks almost exactly like a Ford F-150, the best selling truck in America for the past 30+ years, I think we will see a powerful and attractive pickup truck from Rivian within the next 5 or so years.

There are two problems I see with Tesla cars right now. One is that they are primarily selling sedans. A vehicle breed that is fast falling out of favor with consumers, with most major automakers ditching anything but crossovers, SUV's, and pickup trucks.

The other problem is how they are charged. Tesla is unique in the EV market whereas it uses a Tesla specific charging apparatus. In other words, if a charging station does not have a Tesla charger available, you can't charge your Tesla.

All other EV's in the market, no matter who manufactures them, use a universal charging apparatus, and you can bet that with that in mind, all major EV automakers are going to make investments into infrastructure to ensure that owners can easily and conveniently charge their cars wherever they may be.

Tesla will be at a major disadvantage with this, as it will have to work harder to compete for charging station space anywhere where charging capabilities may be offered, and may even have to pay a premium to get that space.

Another thing that makes Rivian more appealing is of course its relationship with Ford. Why? Because I think over time Ford may have more interest in the company and its technology as even Ford turns more of its fleet of vehicles over to electric power.

Of all of the automakers, Ford is best poised to dominate the entire auto market since it has streamlined its operations over the years and has made its primary focus on two brands.

Ford and Lincoln.

If I were to look 10 years into the future, I would say that Ford will almost certainly own more of Rivian. And it is highly probable that Amazon may increase its share as well.

Being where Rivian can position itself, it has the auto making expertise of Ford and the techno savvy expertise of Amazon behind it. With all of this behind it, I can easily see Rivian fast becoming one of the largest companies in the world, with perhaps some of the best vehicles this space can offer to boot.

As I said before, there are few IPO's that appeal to me. At the same time, one always says, "What I want to look for is who is the next IBM? The next Microsoft or Apple? The next Google?"

I think Rivian is it.

Rivian - Electric Adventure Vehicles

Lead image courtesy of Pixabay, user paulbr75. Electric Charge Road Sign - Free photo on Pixabay