Rivian Topples The "Big Boys" After 2 Days Since Market Debut

Newly-listed ev company, Rivian Motors (RIVN) has blown past Ford Motor Company (F) and General Motor Company (GM) within 48 hours of its debut. The company has delivered only about 150 cars since it started distributing in September and plans to produce around 1000 cars for the rest of the year. As of now, Rivian is the second most valuable in the list of carmakers, behind Elon Musk’s Tesla Inc (TSLA).

After two days of trading, the company is valued at above $120 billion after growing as much as 58% before closing. Ford and Amazon are two of the biggest investors in the company and it is being speculated that the company is shooting up because of its potential and not its performance. Ford has invested half a billion in the company while Amazon has about a 20% stake in it.

Rivian currently has 55,400 pre-orders to build R1S SUVs and R1T pick up trucks pending in the backlogs with its existing order to make 100,000 electric delivery vehicles for Amazon. These order will only help the company row bigger however, taking over Tesla is a far cry as of now. Tesla is not only one of the staples in the electric vehicle industry, it currently has the biggest market share as well. Compared to Rivian, Tesla has sold around 630,000 vehicles this year alone.

The CEO of the company, R.J. Scaringe became a billionaire in just a matter of days. His net worth, for the 1.7% stock he holds in the company, is around $2 billion. Scaringe said, “We began thinking about the truck, SUV, and crossover segments as they presented a massive opportunity for us to demonstrate how a clean sheet, a technology-focused vehicle could eliminate long-accepted compromises. We wanted to establish our brand by delivering a combination of efficiency, on-road performance, off-road capability, functional utility, and product refinement that simply didn’t exist in the market.”

Tesla CEO Elon Musk, congratulated the company on its blockbuster IPO but he also sent a message of a seasoned campaigner in a very tricky industry. “There have been hundreds of automotive startups, both electric and combustion, but Tesla is [the] only American carmaker to reach high volume production & positive cash flow in past 100 years,” tweeted Musk.

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