Rivian. SOPA Images/Getty
Rivian, an electric truck manufacturer, saw its IPO debut Wednesday. It soared up to 46%
Rivian's current value is more than $100 billion. This is a sign that there is a strong demand for EV businesses among investors.
Rivian stock reached a record high of $113.90 per shares, which is well above its IPO price of $78 per share.
Rivian stock soared up to 46% during its IPO debut Wednesday. This gave the electric truck manufacturer a market value of over $110 billion. This makes Rivian stock more valuable than its competitors Ford and General Motors.
The firm's IPO was priced at $78 per share Tuesday night, which is well above the expected range of $72- $74, which was already increased from a range of $57- $62. Rivian's IPO pricing put the company at $77 billion, fully diluted.
Rivian's IPO raised $11.9 billion by selling 153,000,000 shares. This was the sixth largest trading debut on a US stock exchange. Under the ticker symbol RIVN, shares trade on the Nasdaq.
Rivian has a lot of work ahead of him, with a valuation that is higher than Ford's market cap at $80 billion and General Motors' $86 trillion. According to SEC filings, the EV startup is expected to lose $1.28B on revenues of less than $1 million during the third quarter.
The luxury-electric truck company was established in 2009. However, some customers may not get their vehicles until 2023. Rivian has already received more than 55,000 preorders for its vehicles. Rivian's website states that the R1T or R1S models start at $70,000.
Rivian has the support of Amazon, its investor and early customer, who ordered 100,000 electric delivery vehicles in 2019. Amazon expects to complete its order by 2030. The electric delivery vans will be delivered to the ecommerce giant in the early part of next year. Rivian is the largest shareholder of Amazon, with a 22% stake in the company worth more than $12 million.
