Jim Cramer says he’s suspicious that Rivian is the following Tesla and would prefer to own Ford

Jim Cramer said Monday that despite the fact that electric-vehicle startup Rivian Automotive has some strong backers as it plans to hit the public markets, he is incredulous it will be the following Tesla and would prefer to own shares of Ford Motor.

“Even if everything goes right for Rivian, this industry is getting a little crowded in here. When Tesla was starting out there was nobody else,” Cramer said on “Mad Money.” Now, however, “Rivian’s got Ford’s F-150 Lightning hot on its heels, along with GM’s electric Hummer and even Tesla’s Cybertruck.”

With Amazon and Ford as sizable investors, Rivian priced its shares somewhere in the range of $72 and $74 for its IPO and is probably going to begin trading Wednesday. “Given that the company plans to offer 135 million shares, we’re talking about a $9.85 billion fundraise, which would make this the sixth- or seventh-largest IPO in U.S. history,” Cramer said.

Cramer said he wouldn’t be astounded in case Rivian’s stock takes off even with such a high valuation in light of the fact that “the people buying this thing won’t care about valuation.” Rather, investors will be wagering that the youthful organization can increase production and become a significant competitor in the developing EV market.

Cramer commended Rivian for the number of orders it’s gotten for its pickup truck and planned SUV, yet in addition its significant commercial van manage Amazon. Moreover, the reality a competitor like Ford is a investor in Rivian “is a huge acknowledgment” of Rivian’s potential, he said.

Eventually, Cramer let watchers know that “if you really believe in Rivian, you’ve got my blessing to speculate.” However, he added, “I’d much prefer to stay on the sidelines and get my electric vehicle exposure from Ford, which is why we own it for the charitable trust.”