The adventurous Rivian started a Wall Street adventure.
The Rivian Company is now the largest US company, measured by market capitalization, which has no turnover. It’s reports Bloomberg Friday night.
The stock costs about 65 percent more than the starting price listed on the exchange Wednesday morning. According to Bloomberg, the price is missing a roughly 25 percent rise, before the company caught up with VW’s market value.
It’s seriously unimaginable when it doesn’t have any significant income yet, says Michael Hewson, head of analysis at CMC Markets, of Rivian’s market capitalization.
Rivian shares are now rising for the third day in a row. The stock was up 5.6 percent at closing time on Friday night.
Musk: The real test
At closing time on Friday, Rivian’s market capitalization is more than $112 billion, having surged nearly 60 percent since it debuted Wednesday. This corresponds to 973 billion Norwegian kroner, at today’s exchange rate.
Among US car manufacturers, only Tesla now has a higher value than the Rivian.
For comparison, two days after its 2010 IPO, Tesla had a market capitalization of $2 billion in 2010. Now Rivian CEO RJ Scaringe owns a stake in Rivian that alone is worth the same value, according to CNBC.
Rivian’s stock market hack made Tesla CEO and founder Elon Musk turn to Twitter again:
“I hope they can achieve high production and zero cash flow. This is the real test,” he wrote on Twitter.
The electric car company has big investors behind it like Amazon and Ford, and differs from the competition in targeting electric SUVs and “pickups.”
The company has barely managed to bring its first products to market: the first SUV is scheduled for release in December, while the first pickup is scheduled for September.
according to financial times Rivian can raise significant amounts of capital raised in connection with the listing: before discounts, the company can raise $11.9 billion.
Among similar IPOs, only Facebook is said to be able to boast a larger pool in recent times, in what was one of the largest IPOs ever in May 2012.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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