Rivian Automotive has become the largest US business by market value despite having little revenue just days after its outstanding Nasdaq debut.
The stock was at nearly $130 per share at the end of Friday’s trading session, marking a daily surge of more than 5.65%, after a jump of over 67% from its initial public offering price of $78 during its first day at the stock exchange on Wednesday.
The market value of the California-based electric truck maker, backed by Amazon, has topped the market cap of its e-vehicle peer Lucid with no sales to its name. The latter has seen its stock price advance 339% this year.
“(It’s) seriously mind boggling when it hasn’t even earned any discernible revenue yet,” Michael Hewson, chief market analyst at CMC Markets, said of Rivian’s valuation, as quoted by Bloomberg.
Rivian, which was founded in 2009 and dubbed 'Tesla killer' by some media, produces electric pickup trucks and SUVs. The manufacturer has reportedly delivered just 150 of its electric R1T pickup trucks to customers (mostly employees) so far and has little revenue to report.
The startup rolled out the R1T – its first vehicle – in September and will launch its electric SUV, the R1S, in December. Prices for the pickup truck start at $67,500, while the SUV base package starts at $75,500.
The electric car sector has been attracting investors’ attention since mid-2020, when policymakers and corporations across the globe opted to back the industry amid growing urgency to tackle climate change.
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