$1$

ACTG $495$

Case $3-$ Tesla vs$.$ Rivian

The following case involves the financial analysis of Tesla Motors, Inc. $($Tesla$)$ and Rivian

Automotive, Inc. $($Rivian$).$ The case will compare the performance and financial position

of both companies at the end of their first full year of operations after their initial public

offering. Tesla first sold stock to the general public on June $29,2010,$ so we will look at

Tesla$$s December $31,2011$ Form $10-$K$,$ and Rivian first sold stock to the general public on

November $10,2021,$ so will look at Rivian$$s December $31,2022$ Form $10-$K$.$

The case will be structured in the form of an interview, whereby you will be asked for your

expert explanations and analysis of each companies$$ financial information. The person

conducting the interview is gathering information on behalf of a potential investor, and has

no background in accounting or finance. The investor is considering making an investment

in Rivian, and is attempting to get a glimpse into the future through a comparison of Rivian

to Tesla in their first full year of operations, post IPO. The investor is aware that Tesla$$s

stock has been wildly successful, currently trading at more than $370$ times its initial price.

Rivian$$s stock, in contrast, is currently trading at about $10\%$ of its initial price. So$,$ the

investor is hopeful that a comparison of Rivian to Tesla, at the same time in their life cycle,

might shed light on Rivia

n$$s investment potential, and whether or not this is an excellent

time to buy. At this point in time, however, the investor is not capable of understanding the

information presented in the companies$10-$Ks and is looking for assistance.