Wall Street Loves Rivian: The EV Maker Debut's At $93 Billion

By Cee Lippens November 11, 2021 249
Rivian CEO and founder R.J. Scaringe plans to build at least one million vehicles a year by the end of the decade. Rivian CEO and founder R.J. Scaringe plans to build at least one million vehicles a year by the end of the decade.

Rivian Automotive Inc (RIVN.O) had its much anticipated IPO debut last Wednesday with an opening price of $78 on the Nasdaq. The EV Automaker quickly surged almost 30% climbing to a high of $119 a share before settling in slightly below at $106 a share. The Rivian IPO has the company valued between $86 and $93 billion, billions more than was speculated by Bloomberg analysts a few months ago. This makes the automaker that just started rolling its R1T electric pick-up off the line a month ago, the second most valuable auto manufacturer on paper, slightly below Tesla Inc  (TSLA.O), which hovers around $1.01 Trillion .  

Despite just having started selling vehicles and having little revenue to report, Rivian is now ranked ahead of General Motors Co (GM.N) at $85 billion; Ford Motor Co (F.N) at about $77 billion; Lucid Group (LCID.O) at $65 billion, and Stellantis (STLA) at $64 billion. Amazon, one of Rivian’s earliest and biggest investors, has a 20% stake in the company,  now worth about $17 billion, and Ford, another big investor’s 12% stake is valued at over $10 billion. Though Rivian has had little revenue to report, the company did reveal it has nearly 150,000 initial orders for its debut EV, the R1T. 

The first customer R1T driving off Rivian's production line in Normal IL.

Not everyone is buying all the hype. Forbes had cautioned against buying Rivian stock even at the opening price days before the IPO. Forbes analysts cited the company hasn't manufactured enough vehicles yet and is in competition with well-funded EV upstarts as well as old-school manufacturers like GM and BMW, both of which have  multi-billion dollar plans to expand EV production. Forbes doesn't think Rivian can deliver for investors with an overheated IPO stating " It makes no sense for Rivian to IPO with a valuation anywhere near Honda or GM. That valuation implies that Rivian will sell 2 million vehicles in 2030, or nearly 2.5 times the number of Tesla (TSLA) vehicles produced over the past 12 months and 66% more vehicles than Honda (HMC) sold in the U.S. in 2020." 

The R1T beat Tesla, GM and Ford to the market with the first fully electric pickup. Motor Trend reported that the Pick-up is one of the fastest pick-up’s they have ever tested. The all-terrain R1T went from 0-60 mph in 3.2 seconds and covered a quarter mile in 11.7 seconds at 111.2 mph.  The street-tired R1T was even faster with 0-60 mph in 3.1 seconds.

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In a video posted by Rivian CEO RJ Scaringe on Twitter, the R1T shows off one of its impressive skills and one of the reasons for all the buzz. 

The R1T is completely protected against water and still operates normally while submerged, and no leaks were found inside the vehicle despite water getting as high as the front light bar. Officially, the R1T has a wading depth of 3+ feet according to Rivian’s website. 

 

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Last modified on Wednesday, 17 November 2021 14:04