Shares of electric vehicle start-up
Rivian Automotive
RIVN
closed its first day of trading up 29%. The stock began trading at $106.75 per share on the Nasdaq, well above the $78 level the shares were originally priced at. Rivian now has a market valuation of $86 billion (after an implied valuation of $91 billion at the open), making it worth more than auto giant
Ford
F
and on par with
General Motors
GM
.
Founded in 2009, Rivian notably beat
Tesla
TSLA
to market with a fully electric pickup truck called the R1T, and it has plans to launch a seven-passenger electric SUV called the R1S in December. The company also counts
Amazon
AMZN
and Ford as some of its major backers; Amazon’s 20% stake is now worth about $17 billion, while Ford’s 12% stake equates to more than $10 billion.
However, Rivian has yet to generate any real revenue. It said in its IPO prospectus that it will lose up to $1.28 billion in the third quarter, and revenue will only range from $0 to $1 million. The global chip shortage and port constraints will likely negatively impact Rivian and its ability to produce high volumes of its vehicle fleet as well.
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