By: Shane Weston
November 14th, 2021
Rivian Automotive (RIVN), an innovative automotive technology company, was listed on the NASDAQ last Wednesday at $100.73 per share. Since then, the share price has risen to $129.95 per share. The California based start-up that was founded in 2009 by an MIT graduate, has seen his company grow to incredible heights with a valuation of $86 billion. This valuation has it valued more than Ford (F) and about the same with General Motors (GM).
In addition to the excellent rise in the share price and high valuation, the company become the largest IPO in 2021. Rivian's CEO, RJ Scaringe, emphasized how important his employees were to its current success and its future potential. He states, "Ultimately, our success is going to be driven entirely by how well we continue to collaborate and how well we continue to pull in diverse points of view, treat each other with empathy, look to each other for inspiration and stay open to new ideas."
The high-tech automotive company has produced well performing electric vehicles on a "skateboard" platform making it an attractive investment opportunity for other companies. Already, Amazon (AMZN) and Ford have seen the benefits in their investment. Amazons 20% stake is now 5 times its original investment while Fords 12% stake is valued over $10 billion.
Rivian continues to look forward after becoming the first company to produce a fully electric pickup truck by having 10,000 Rivian-Amazon delivery vehicles on the road next year. By 2030, it is hoped to have 100,000 delivery vehicles.
The EV market looks to become more competitive as car companies begin to be more eco- friendly, but it looks like Rivian has created a great head start.