The electric vehicle maker has been public
for all of one week, but its share price has more than doubled in that time, valuing Rivian at more than $140 billion — just ahead of Volkswagen ($139 billion), and in third place behind Toyota ($306 billion) and Tesla ($1 trillion).
On Tuesday, the stock opened 6% higher, at about $159 a share. When the company debuted last week, it priced its shares at $78.
Even though Rivian hasn’t brought any of its electric trucks to market, it’s ginned up major investor interest with prominent backing from Amazon
, which bought a 20% stake in 2019, and Ford (F)
. Jeff Bezos is a big fan, and has been seen shuttling his fellow space explorers to and from Blue Origin’s West Texas launch site in Rivian’s signature truck.
Electric vehicle hype is nothing new — many analysts, and even Tesla’s own founder Elon Musk, have argued that its Tesla’s valuation is overinflated. But its stock keeps climbing as Wall Street envisions a future in which all-electric vehicles are the norm. Under President Joe Biden’s $1.2 trillion infrastructure plan, signed into law Monday
, about $7.5 billion is being set aside to build a nationwide network of plug-in electric vehicle chargers.
Investors who may have missed out on Tesla a decade ago aren’t keen to miss out on another hot EV pioneer.
Rivian also boasts a potential edge over Tesla in the US market, in part because it’s angling for the non-Tesla, or even anti-Tesla
Rivian’s primary product is not just any EV — it’s a pickup truck. That’s important in the US market, given that the top three most popular vehicles in the US are the Ford F-150, the Chevy Silverado and the Ram, in that order, according to Edmunds research.