Rivian, a US-based electric vehicles maker, made its debut on Wall Street and despite being a relatively young company, investors have now placed it in the same league as the most recognized brands in the auto industry.
On the first day of trading after its initial public offering (IPO), the company’s stock jumped 29 percent which gives it a market valuation of $86 billion. This is in line with the valuation of General Motors and higher than Ford’s.
What’s interesting about its valuation is that the well-known brands, among which Rivian now sits, produce millions of vehicles a year while Rivian started delivering its vehicles just this year, although the company has been around for over a decade now.
The bullish nature of the investors towards the electric vehicles market seems to have helped the company as they are now betting big on companies that show future promise and appear to have the ability to lead the market.
Compared to Tesla, which is currently the leader in the EV market, the valuation of Rivian is still a fraction of Elon Musk-led company which now has a market cap of over $1 trillion. Rivian is trading under the symbol “RIVN” on the Nasdaq.
Amazon and Ford are the investors in Rivian, holding 20 percent and 12 percent stake respectively, which is now worth around $17 billion and $10 billion. A couple of months ago, Amazon had valued its investment in the EV maker at around $3.8 billion.
Rivian was operating in stealth mode since 2009 and launched its pickup truck and SUV in November 2018. The company started with the aim of launching the Tesla Roadster competitor, but it pivoted to making SUVs and pickup trucks. It has been investing heavily to ramp up production, including for its upscale all-electric R1T pickup truck.
Earlier this year, Amazon announced the purchase of 100,000 delivery vans which will be produced by Rivian as a part of the online retail giant’s ‘Climate Pledge.’ The new delivery vans for Amazon are already operational in some regions in the United States.
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