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.