Rivian Debuts On Stock Market With Historic $90 Billion Valuation
Electric vehicle startup Rivian kicks off its public trading with a massive valuation that immediately surpasses legacy automakers Ford and GM. Investors are betting heavily on the company's future potential rather than its current production numbers.
Electric automaker Rivian debuts as a publicly traded company with an opening share price of $106.75, giving it an implied valuation of $90 billion. This opening price represents a 37% jump from its initial IPO price of $78 and pushes its market cap above traditional automakers General Motors and Ford. The stock continues to climb after trading begins, hitting a high of $119 per share before settling around $112.
Founder and CEO RJ Scaringe attributes this historic IPO to investor confidence in the broader transition to electric vehicles over the next two decades. He explains that shareholders are valuing Rivian based on its future potential to capture a portion of the 90 to 100 million vehicles sold annually worldwide, rather than evaluating the company purely on its current profit and loss statement.
Rivian holds ambitious plans that extend well beyond its R1T pickup truck, R1S SUV, and its contract to build 100,000 electric delivery vans for Amazon. The company aims to become a technology leader by vertically integrating its operations, which includes developing its own battery cells and maintaining full control over its core software, electronics, and propulsion systems.