Wed. Dec 1st, 2021

Rivian, whose market value recently touched $ 104 billion, closed at $ 100.73 in New York trading and valued it at about $ 88 billion.

By Bloomberg

Rivian Automotive Inc. rose 29% in its trading debut before giving up some of that profit, which put the electric truck manufacturer’s market value on par with General Motors Co. and above that of Ford Motor Co. an EV competitor Lucid Group Inc.

Shares of Rivian traded at $ 106.75 each on Wednesday after selling for $ 78 in its initial public offering, exceeding the Irvine, California-based company’s target of raising nearly $ 12 billion.

Rivian, whose market value recently touched $ 104 billion, closed at $ 100.73 in New York trading and valued it at about $ 88 billion. On a fully diluted basis, including options and limited stock units, Rivian is valued at about $ 98 billion.

Backed by companies like Amazon.com Inc. and Ford, Rivian sold 153 million shares on Tuesday after marketing $ 135 million for $ 72 to $ 74, a range that had previously raised it from $ 57 to $ 62.

The listing is the largest worldwide this year, and the sixth largest ever on a U.S. stock exchange, according to data compiled by Bloomberg.

Rivian is hitting public markets because it looks like it’s diving into the electric vehicle market, led by Tesla Inc., which has a market value of more than $ 1 trillion.

Founder and CEO RJ Scaringe said in a Bloomberg TV interview on Wednesday that Rivian’s biggest challenge is “health of the supply chain” as it increases production amid parts shortages.

The company’s valuation reflects the company’s ability to scale quickly and its plan to build commercial vehicles, Scaringe said. It starts with 100,000 battery-powered electric delivery vans for Amazon, which Scaringe described as an “initial order”.

In addition to consumer EVs, Tesla has also built a strong and growing energy storage business, including solar, home and commercial energy storage. Scaringe indicated that Rivian is considering expanding into similar cases.

“For us, it’s a question of how we can switch ourselves from a fossil fuel based economy as quickly as possible?” Scaringe said. “And of course it has a big focus on the transport products. But it also includes energy products. And this is something we will definitely go into, as we are really trying to speed it up. ”

Just a few months ago, Rivian delivered its first vehicles, mostly to its own employees. By year – end, it will produce only about 1,200 units at its Normal, Illinois plant. The company, which lost nearly $ 1 billion in the first half of the year, estimates that by late 2023, annual production will reach 150,000 vehicles at its main facility.

Rivian’s IPO was led by Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co., with more than 20 banks listed on the cover of its prospectus. Rivian shares are traded on the Nasdaq Global Select Market under the symbol RIVN.

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