Amazon-backed electric vehicle maker Rivian went public this week with the largest IPO in the U.S. since 2014. The company now has a higher market value than Ford or GM despite the fact that the company has only delivered 156 vehicles so far.
Recode reports that electric vehicle maker Rivian went public this week with the largest IPO in the U.S. Since 2014. Rivian stock was priced at $78 a share and raised around $12 billion, which will be used to boost production and design more vehicles.
Rivian’s pickup trucks were parked outside the Nasdaq building in New York on November 10, 2021, the day of the electric automaker’s debut on Wall Street (AFP)
That stock price set Rivian’s valuation around $70 billion but the company’s market capitalization went above $90 billion after the stock began trading at almost $107 per share by the end of the first day.
Rivian, which is backed by major firms such as Amazon which owns a 20 percent stake in the company, is considered one of the biggest threats to Tesla in the electric vehicle market and is now one of the most valuable automakers in the world. Due to the surge in stock price this week, Rivian is now worth more than Ford or GM despite the fact that the company has only delivered 156 vehicles so far.
Rivian began shipping its $73,000 electric pickup truck in September and a second model, a seven-seat SUV priced at $75,500 is expected to release next year. While electric vehicles are currently popular and being pointed to as the future of modern vehicles, there are still a number of challenges to be faced before mass adoption can take place.
A semiconductor shortage has delayed the production of vehicles across the auto industry and with a lack of electric vehicle charging stations across the U.S., electric cars are just not an option for many Americans.
Jeremy Michalek, an engineering and public policy professor at Carnegie Mellon, told Recode in August: “It’s a big deal that more public infrastructure is available. Probably the first priority is making sure there are enough fast chargers available on highway rest stops so that you can take your vehicle wherever you want to go.”
Read more at Recode here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address lucasnolan@protonmail.com
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