Rivian Automotive Inc. stock value jumped 53 percent following its launch on Nasdaq yesterday, making the EV maker the second-most valuable U.S. car company with a market valuation of more than $100 billion. Rivian rivals General Motors in the all-electric vehicle segment.
Per a report from Reuters, the valuation places Rivian behind Tesla, the latter of which is valued at a whopping $1.06 trillion. Rivian has only now begun to sell vehicles, and currently has almost no revenue to report. Like the broader auto industry, Rivian is facing production issues with supply chain disruptions and product launch delays.
The first Rivian product out the gates is the new all-electric Rivian R1T pickup truck, the first example of which rolled off the line in Illinois in September. The R1T will face competition from the upcoming Chevy Silverado EV and Ford F-150 Lightning. The EV producer also has plans to launch an SUV model and delivery van, and hopes to build a million units total by the end of the decade.
At more than $100 billion, Rivian is considered more valuable than General Motors, which is valued at $86.06 billion, as well as Ford, which is valued at $77.37 billion. Rivian’s impressive IPO raised nearly $12 billion for the startup automaker, making it one the biggest U.S. IPOs in history.
General Motors CEO Mary Barra said that the Rivian IPO proved just how undervalued GM is.
“What it highlights to me is the huge opportunity,” Barra said at a recent New York Times event. “General Motors is so undervalued.”
Rivian is backed by Amazon, with the retail giant holding a 20-percent stake. Rivian is also backed by Ford, which holds a 12-percent stake.
Rivian shares closed at at $100.73 on Wednesday. At the moment, Rivian stock value is trading at 116.04 per share as of this writing.
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Comments
Its because the long promised EVs are taking so long to come to market. Plus, everyone is betting that when they do they will underwhelm like many other GM products. If GM wants to show its worth that kind of money (not saying Rivian or Tesla is worth it) they better bring a product to market that is future focused rather than “legacy”. Just another GM with battery electric drivetrain isn’t going to cut it.
I predict a hodge-podge of exterior styling cues highlighted (pun intended) by fancy LED sequences. Jet black interiors, nanny controlled performance and mediocre charge times, inflated MSRP’s…
These start ups can do that plus build an entire support industry/staff to boot.
I disagree. GM is making dedicated EV platforms, whereas for example Ford just stuck a bunch of batteries in the current F150 frame for the Lightning. GM and LG Chem have a lot of research into batter chemistry, and not to mention the manufacturing and assembly capabilities GM has, they have a lot of facilities all over the country and building new ones. Scaling isn’t as fast or easy as it seems, Tesla is still trying to scale it’s operations. Apple’s failure to get into the automotive market shows just how hard it is to do.
or maybe it means rivian is overvalued.
Nope you are just a hater.
i’m a NotBuyingTheHype-er.
Nope just a hater
Mary chit her pants when she heard this, how can it be , we’ve been bragging for years with no product to Jack our stock! Just about everyone is kicking gm’s ass in Lectrics.
I fail to see why these EV companies are so rich. Either GM’s stock will increase or these EV stocks will decrease. Probably a little bit of both. I know Tesla is way ahead of the game, but it’s not *that* special that GM can never attain it.
s-curve!!! s-curve!!! s-curve!!! s-curve!!! s-curve!!!
Tesla currently has a 30% gross margin, that is increasing with production. Tesla is growing 50% or more per year, every year.
As for Rivian, the market is thinking the EV market will grow fast, and Rivian can emulate what Tesla has done…
On GM, they have recalled almost every BEV they have built, and GM’s does not have a BEV to defend their markets against Tesla and other competitors. GM is late to the party with mass market desirable EV’s. For GM its mostly a perception problem, they will catch up eventually.
gm is overweight. It’s a bloated company with waste oozing out everywhere. It’s survival of the fittest. gm’s EV tank is empty.
General Motors CEO Mary Barra said that the Rivian IPO proved just how undervalued GM is.
Coming from the largest individual stockholder of GM stocks.
I’ll bet she will say whatever it takes to increase her holdings value.
Mary Barra is not GM’s biggest individual shareholder.
Just like Tesla, Rivian is over rated. Elon knows and stated his company is based hollow stocks just because it’s an EV. Biden won’t admit Tesla is the EV model for up and coming EV companies because it’s not union based. Not sure if Rivian is union or not. We know if it’s not, no gov funding.
Mary Barra should do a stock swap with Toyota and bring in some of their planners….Rather than force the issue? TM is bringing more Hybrids to market…With the power grid as poor as it is? The lack of charging stations….Length of time required to recharge? GM is committing suicide by pushing the full EV platform….Too fast and too soon…..Mary is KILLING GM!
Owning gm stock is as bad as putting your cash in the bank.
I wish Rivian best wishes and luck in these crazy times.
And these are very crazy times, the likes of which we have never experienced before.
This is a glamor stock which is definitely not investment grade but speculative grade.