this post was submitted on 06 Sep 2024
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Electric Vehicles
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Rivian will probably be bought out by a larger company if they fail to scale, so that going zero possibility seems low.
They could also go bankrupt and then get bought up so your stock will be worthless. Would be hardly the first time this happened.
Bankruptcy (chapter 11) doesn't mean the company goes out of business, or that the share price goes to zero. It means they renegotiate debts, after presenting a plan describing how they'll be able to pay those renegotiated debts. If those debts can not be renegotiated, the company can not present a plan that offers paying them off, or the court rejects any part of the plan, then the company's assets may be liquidated to pay any outstanding debts.
Being bought out would likely come before any of this, which again means the stock wouldn't be worthless.
I'm saying that scenario has a low probability
Your guess is as good as mine.