Short Hills Capital’s Steve Weiss is buying Ford Motor Co (NYSE: F) stock ahead of the Rivian IPO.
“Ford owns 12% of Rivian and the Rivian IPO is going to be hot, hot, hot,” Weiss said Monday on CNBC’s “Fast Money Halftime Report.”
Rivian is now expected to offer 135 million shares priced between $72 and $74 per share for its IPO, up from $57 to $62 per share.
As Rivian’s stock moves, Weiss expects Ford to follow.
“I think you’ll continue to see it move up as Rivian trades up higher,” he said. “Rivian is a pretty special company because it’s got some great backers.”
One company that is backing Rivian is Amazon.com Inc (NASDAQ: AMZN). Amazon has already placed an order for electric delivery vans from Rivian, but Weiss expects the e-commerce giant to order more vehicles beyond its initial order.
Weiss said his Ford stock position is a trade, rather than an investment.
“When the momentum in RIvian stops is when I may get out of the Ford trade, but in all likelihood before that,” he said.
Rivian is set to make its public debut on Nov. 9.
See Also: Want To Buy Into Rivian IPO Early? SoFi Is Offering Early Access To Customers
F Price Action: Ford is making new 52-week highs during Monday’s trading session.
The stock was up 5.08% at $20.27 at time of publication.
Photo: courtesy of Rivian.
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