Cramer is skeptical Rivian is the following Tesla and would slightly personal Ford

CNBCs Jim Cramer said Monday that although electric vehicle startup Rivian Automotive has some strong supporters as it prepares to enter the market, it is skeptical that it will be the next Tesla and would prefer shares of Ford engine.

“Even if everything is going well for Rivian, this industry gets a little overcrowded here. When Tesla started there was no one else, ”Cramer continued.Bad money“Now, however,” Rivian has Ford’s F-150 Lightning hot on his heels, along with GM’s electric Hummer and even Tesla’s Cybertruck. “

With Amazon and Ford as great investors, Rivian has valued its stocks between $ 72 and $ 74 for the IPO and is expected to start trading on Wednesday. “Given the company’s plans to offer 135 million shares, we’re talking about a $ 9.85 billion fundraising, making this the sixth or seventh largest public offering in US history,” said Cramer.

Cramer said he wouldn’t be surprised if Rivian stock stood out even at this high valuation because “the people who buy this thing don’t care about valuation.” Rather, investors are betting that the fledgling company can ramp up production and become a major competitor in the growing EV market.

Cramer praised Rivian for the number of orders it received not only for its pickup truck and the planned SUV, but also for its own Big van deal with Amazon. Additionally, the fact that a competitor like Ford is an investor in Rivian is “a great recognition” of Rivian’s potential, he said.

Ultimately, Cramer told the audience that “if you really believe in Rivian, you have my blessings to speculate.” However, he added, “I would prefer to stay on the sidelines and promote my Ford electric vehicle, which is why we own it for the nonprofit foundation.”

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Disclosure: Cramer’s nonprofit trust owns shares in Ford and Amazon.