CNBC’s Jim Cramer stated Monday that although electric-vehicle startup Rivian Automotive has some robust backers because it prepares to hit the general public markets, he’s skeptical it is going to be the subsequent Tesla and would moderately personal shares of Ford Motor.

“Even when every part goes proper for Rivian, this trade is getting just a little crowded in right here. When Tesla was beginning on the market was no one else,” Cramer stated on “Mad Cash.” Now, nevertheless, “Rivian’s obtained Ford’s F-150 Lightning sizzling on its heels, together with GM’s electrical Hummer and even Tesla’s Cybertruck.”

With Amazon and Ford as sizable buyers, Rivian priced its shares between $72 and $74 for its IPO and is more likely to begin buying and selling Wednesday. “On condition that the corporate plans to supply 135 million shares, we’re speaking a few $9.85 billion fundraise, which might make this the sixth- or seventh-largest IPO in U.S. historical past,” Cramer stated.

Cramer stated he would not be shocked if Rivian’s inventory takes off even with such a excessive valuation as a result of “the folks shopping for this factor will not care about valuation.” Fairly, buyers shall be betting that the younger firm can scale up manufacturing and change into a significant competitor within the rising EV market.

Cramer complimented Rivian for the variety of orders it is acquired for not solely its pickup truck and deliberate SUV, but in addition its main industrial van take care of Amazon. Moreover, the actual fact a competitor like Ford is an investor in Rivian “is a large acknowledgment” of Rivian’s potential, he stated.

In the end, Cramer instructed viewers that “for those who actually consider in Rivian, you have obtained my blessing to take a position.” Nonetheless, he added, “I might a lot desire to remain on the sidelines and get my electrical car publicity from Ford, which is why we personal it for the charitable belief.”

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Disclosure: Cramer’s charitable belief owns shares of Ford and Amazon.