Connect with us

Hi, what are you looking for?

Editor’s Pick

Electric vehicle start-up Rivian motors on to the stock market

The largest initial public offering in the world this year and one of the biggest in American history made a spectacular start yesterday as shares in a company touted as a future rival to Tesla surged by as much as 53 per cent.

The market value of Rivian Automotive, an electric vehicle start-up, briefly eclipsed $100 billion after its shares started trading on New York’s Nasdaq exchange. In contrast, Ford, one of the company’s investors and a titan of the American carmaking sector, is valued at $77.4 billion, while General Motors, another traditional industry heavyweight, is worth $86 billion.

The race to snap up Rivian shares eased and the shares closed up 29.1 per cent, or $22.73, at $100.73.

Rivian is expected to produce only 1,200 vehicles this year, but investors are betting that it will become one of the dominant players in a rapidly growing market dominated by Tesla, whose valuation recently reached $1 trillion.

The start-up raised $11.9 billion by selling 153 million shares at $78 apiece in an offering that was increased as a result of demand; a week ago, the company’s sights had been set on a valuation of $53 billion at $62 a share. It was the sixth-biggest initial public offering on the US stock market, according to Bloomberg.

Founded in 2009 by Robert “RJ” Scaringe, 38, and based on the west coast of the United States, Rivian makes electric vehicles at a manufacturing site in Normal, Illinois. Its range includes the R1T pick-up truck and the R1S sports utility vehicle. The company aims to lift production to an annual rate of 150,000 by the end of 2023 and is pushing for a million units by the end of the decade.

Rivian is backed by Amazon, which recently disclosed a 20 per cent stake and has ordered 100,000 electric vehicles, to be delivered by 2030.

Tesla’s recent surge on the stock market ended abruptly this week after Elon Musk, its billionaire chief executive, said that he would sell a tenth of his stake in the company following a social media poll. The shares remained in sharp focus yesterday, having declined by almost 16 per cent since Musk, 50, announced his intention to reduce his holding over the weekend, and the company’s valuation fleetingly slipped back below $1 trillion.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

A worker of Ayala Corp’s Integrated Micro-Electronics Inc. (IMI) solders an automotive computer component part at an electronics assembly line in Binan, Laguna south...

News

MARI GIMENEZ-UNSPLASH THE NATIONAL Government plans to borrow P200 billion from the domestic market in July, the Bureau of the Treasury (BTr) said on...

News

SCOTT GRAHAM-UNSPLASH PHILIPPINE PRESIDENT Rodrigo R. Duterte has signed an order updating the list of investment areas where foreign ownership is limited or barred....

News

ETIENNE GIRARDET-UNSPLASH WHOLESALE PRICES of building materials in Metro Manila jumped to their highest in more than a decade in May as construction activities...

News

MAYNILAD Water Services, Inc. targets to distribute starting in July up to 10 million liters per day (MLD) of its “new water” or treated...

News

SOLAR Philippines Power Project Holdings, Inc. was able to forge contracts for at least 60% of the 10 gigawatts (GW) of energy capacity that...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.