This November 14, 2018 file photo shows the Rivian R1T at the Rivian headquarters in Plymouth, Michigan (AP photo / Paul Sancya, file).
Rivian Automotive’s share surged on Wednesday’s debut, rising 53% as investors sought the next big winner in the electric vehicle market.
With the opening transaction of $ 106.75, Rivian’s market value was about $ 91 billion, higher than Ford and General Motors. Rivian has delivered about 150 electric pickup trucks to its customers, primarily employees, but this is noteworthy as Ford and GM sell millions of vehicles worldwide each year. Deserves.
Ford is one of Rivian’s prominent backers, investing $ 500 million in 2019. The other is Amazon, which held a 20% stake in Rivian prior to the IPO.
As of 3:00 pm Eastern Standard Time, Rivian shares rose 25% to $ 97.49. They rose to $ 119.46.
Rivian aims to take advantage of the growing appetite between consumers and investors for electric vehicles. It joins a long line of companies trying to steal market share from Tesla, which has dominated the EV market.
Rivian raised nearly $ 12 billion in revenue, with a sale price of $ 78 for 153 million shares. The company announced that it will use the proceeds from the IPO to increase production of trucks, vans and SUVs.
Old and new automakers, large and small, are chasing Tesla, which has dominated the electric vehicle market for many years, accumulating over $ 1 trillion in market value in the process. So far this year, Tesla has sold about 627,300 vehicles.
Craig Irwin, an analyst for electric vehicle and EV charging companies at Roth Capital, said there is still plenty of room for new entrants as more companies enter the EV market.
“EVs are inevitable. It’s good for the market to have another EV competitor that we can trust,” Roth said. “The Rivian IPO marks the point of gradual maturity in the industry, showing that trusted players have access to billions of capital.”
Rivian has signed a contract with Amazon to build 100,000 electric delivery vans at its former Mitsubishi plant in Normal, Illinois. Ford Motor Co. holds a 13% stake and said the two companies will work together to develop an electric vehicle.
As of October 31, Rivian has pre-ordered approximately 55,400 vehicles in the United States and Canada. These orders are placed with a deposit of $ 1,000 and can be canceled and refunded.
Rivian will launch its first vehicle, the R1T electric truck, in September and the electric SUV, the R1S, in December. Trucks start at $ 67,500 and SUV base packages start at $ 75,500, soaring even further with all add-ons.
Vehicle options include a $ 10,000 battery upgrade that extends mileage from 314 miles (505 kilometers) to over 400 miles (643 kilometers). A roof-mounted tent for three will add $ 2,650 to the invoice, and an off-road recovery kit will cost an additional $ 600.
The company said it aims to produce about 1,200 R1Ts and 25 R1Ss by the end of 2021 and deliver about 1,000 R1Ts and 15 R1Ss.
The R1T will compete with Ford’s F-150 Lightning electric pickup, which will be available next year. Lightning starts at $ 40,000, but will sell for thousands of dollars as customers add options. General Motors has announced plans for an electric version of the Silverado pickup.
“The advantage of the R1T is that it is likely to be first introduced to the market and appeal to Tesla-type shoppers, but long-term sales expectations for medium-duty trucks over $ 70,000 are not very high,” said the car. Jessica Caldwell of the website Edmonds said in an email.
By 2020, EVs accounted for just over 3% of the global car market and less than 2% of the US car market, according to research firm LMC Automotive. The group predicts that these numbers will reach up to about 15% and 12%, respectively, by 2025.
Founded in 2009, Rivian says it lost $ 426 million in 2019 and $ 1 billion last year. It is reported that it lost nearly another $ 1 billion in the first six months of this year. Published in 2010, Tesla recorded its first annual profit last year.
Electric truck maker Rivian expands to $ 90 billion market value | Chicago News
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