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Rivian touches $ 100,000 billion briefly before profits slow down Automotive News

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Rivian, whose market value touched $ 104 billion briefly, closed at $ 100.73 per share on New York trading, valued at about $ 88 billion.

Who Bloomberg

Rivian Automotive Inc. rose 29% in its commercial debut before leaving a share of that gain, putting the market value of the electric truck manufacturer on par with General Motors Co. and Ford Motor Co. and putting EV rivals above Lucid Group Inc..

Shares of Rivian opened Wednesday at $ 106.75 in its initial public offering for $ 78, which surpassed Irvine, the California company’s nearly $ 12 billion revenue target.

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

Amazon.com Inc. and backed by deep-pocket companies like Ford, Rivian sold 153 million shares on Tuesday after trading at $ 135 million for $ 72 to $ 74, up $ 57 and $ 62 earlier.

The list is the largest in the world this year, and the sixth largest ever in a U.S. exchange, according to data collected by Bloomberg.

Rivian is turning to public markets because it wants to make a cut in the electric vehicle market led by Tesla Inc., which has more than $ 1 trillion in the market.

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

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

In addition to consumer electric vehicles, Tesla has also created a strong and growing energy storage business, including solar, domestic and commercial energy storage. Scaringe noted that Rivian is looking to expand into similar business lines.

“For us, how do we make the transition, as quickly as possible, from an economy based on fossil fuels?” said Scaringe. “And that, of course, is very important in transportation products. But it also includes energy products. And that’s definitely something we’re going to get into as we try to speed it up. ‘

Just a couple of months ago, Rivian delivered his first vehicles, mostly to his staff. By the end of the year, it will have produced about 1,200 units at the Normal plant in Illinois. The company, which lost nearly $ 1 billion in the first half of the year, estimates that by the end of 2023, annual production will reach 150,000 vehicles.

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



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