Posted on 07/24/2023 4:39:21 AM PDT by MeneMeneTekelUpharsin
NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Rivian Automotive, Inc. (NasdaqGS: RIVN). On November 15, 2021, the Company concluded its Initial Public Offering (“IPO”) raising gross proceeds of over $13.7 billion (before underwriting discounts, commissions, and estimated expenses). Then, on March 1, 2022, the Company announced steep price increases for its electric vehicles of 17%-20% that it blamed on “inflationary pressure on the cost of supplier components and raw materials across the world,” which applied not only to future orders but also to nearly all existing pre-orders in process (excluding only those already in the final stages).
Soon after, the Company reversed the price increase for preorders prior to March 1, and also disclosed a projected EBITDA of negative $4.75 billion for fiscal year 2022, due to its intent to “minimize price increases to customers in the near term.”
(Excerpt) Read more at businesswire.com ...
I’ve been involved in a few IPOs. ALL were scams. They were intended to allow the principles to escape with millions of dollars as soon as the blackout period ended, leaving everyone else holding the bag. I’ve had millions of dollars over the years come and go by these schemes because my stocks options would become worthless.
Pump and Dump sell now and buy a Tacoma or a Frontier. At least they will fit in your garage.
I saw a Rivian Amazon truck last week. Big one to.
I worked for 5 different technology startups in my career. Finally rang the bell on #5. Generally, startups run out of cash from their angels and die on the vine prior to IPO.
In the end, a successful technology IPO and longevity of operations depends on your value proposition and how high the barrier to entry is for other competitors. One I remember that went wild in the .com craze was pets.com. Over a billion is valuation for a website selling kibble? A teenager could become a competitor by the end of the day!
In my last endeavor, I knew we had a winner when the military started sniffing around. We were breaking new ground in the early 2000’s in functionality and encryption of voice over IP. We were the first to begin displacing NORTEL and other big telephony platforms with PC’s running Windows.
Once you get to the point you have a pile of stock options with positive equity, you have to make decisions about when to take it off the table. In technology, the rides can end suddenly with little to now warning. One misstep by the company or a move by another competitor and your equity can vanish in a moment. Sell too soon and miss the big win. Nothing worse than watching your equity vanish and you’re handcuffed by a “quiet period” where insiders cannot trade.
I made my decisions at the beginning of each trading window for insiders. Some came out multi-millionaires, others rode it all the way to obsolescence waiting for more and got nothing.
It appears Rivian is up to its neck in corruption
Is it owned by the Chinese Communist Party ?LOL
Thanks for that post. I’m sitting on a bunch of stock from the company I work for that went public in 2019. Brand new technology and I’m trying to work out when to sell.
Bttt.
5.56mm
Well, the managing partner of that law firm is named Kahn.
And it might take a con to catch a con.
There must be some very big money to be had if big sharks are filing suits like this.
AND ... it could be that some other EV manufacturers are behind this litigation...? Just a thought.
In my case, I had another 15 years to retirement. I took shares off the table along the way and put it back in the broader market to start growing and to diversify. There were times I sold and the price went up a lot. Times I sold and the price went down a lot. I never looked back on any of those trades. Prices go up and down on everything, but once it is in your pocket in your private account, it’s a bird in the hand.
Thanks for that. I do have a financial advisor so he advised me to sell some company stock and put it into blue chips, which I did . Tax ramifications are a pain though.
I knew a few people that required the company to issue stock certificates so they could then sell them later and obfuscate the cost basis to avoid capital gains. Illegal? Yes. I chose sell, hold a year and pay capital gains on some. In more volatile times, I just sold and took the income tax hit. For me, it worked to *not* focus on or even understand what could have been. I focused on what to invest in once I had it in my pocket. On that front, I chose a lot of blue chip, high dividend paying companies. I bought companies that are in every Walmart cart and in technology that everyone uses. In (early) retirement, I live off the dividends and and get nearly free healthcare. I’ve discovered it is pretty cheap to not work.
That’s awesome to hear. I’m following a similar path. Just need the next 2 years to pan out. Biden’s reign couldn’t have come at a worse time for us.
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