EV Start Up Rivian Soars This Week After IPO Passing GM’s Market Cap

Electric vehicle start up Rivian was soaring this week since its market debut on Wednesday.

The company’s shares spiked again on Thursday, sending its market cap surpassing General Motors and Ford, reaching a valuation of $104.9 billion.

GM’s market cap was $89.8 billion as of the end of trading Thursday, while Ford’s was $78.1 billion.

Both Amazon and Ford are backing Rivian with Amazon planning to use Rivian vehicles in its delivery fleet. The company has ordered 100,000 to be handed over by 2030.

With Rivian’s current valuation, Amazon’s 20% stake in the business is now worth nearly $21 billion and puts Ford’s 12% stake at $12.6 billion.

Ironically Rivian does not yet have an established business model and only expects to bring in up to $1 million in revenue for the third quarter. It said in its prospectus that it expects to lose up to $1.28 billion during that quarter.

Rivian has a fully electric pickup on the market but has yet to produce high volumes of its vehicles.

The company reserved up to 7% of its IPO allocation for its directed share program, which included people who pre-ordered an electric truck or SUV.

Rival Tesla’s CEO Elon Musk tweeted, “I hope they’re able to achieve high production & breakeven cash flow. That is the true test. There have been hundreds of automotive startups, both electric & combustion, but Tesla is only American carmaker to reach high volume production & positive cash flow in past 100 years.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.