Rivian is now largest US firm by market worth with no income

Rivian Automotive’s shares have soared 67 % from their preliminary public providing value of $78 on Wednesday.

By Bloomberg

Add one other milestone to Rivian Automotive Inc.’s blistering and stunning run as a brand new inventory: It’s now the most important U.S. firm by market worth with no income.

The electric-truck maker, backed by Amazon.com Inc. and Ford Motor Co., has unseated Lucid Group Inc., an electrical automobile peer with no gross sales to its title, on the high of the record.

Rivian’s shares have soared 67% from their preliminary public providing value of $78 on Wednesday. It’s nearly a 25% acquire away from overtaking Volkswagen AG, one of many world’s largest automotive producers, in market worth. Meanwhile, Lucid has seen its inventory value advance 339% this yr. It went public by way of a merger with a blank-check firm in July.

“(It’s) seriously mind boggling when it hasn’t even earned any discernible revenue yet,” stated Michael Hewson, chief market analyst at CMC Markets, discussing Rivian’s valuation.

Electric automobiles have been attracting investor curiosity since mid-2020, when governments, policymakers and companies introduced plans to put money into the business amid a rising urgency to deal with local weather change. Recent robust outcomes from business chief Tesla Inc. and an enormous push from car-rental firm Hertz into EVs has supercharged all shares within the house.

Rivian’s rally for the third straight day vaulted its market worth above Mercedes-Benz maker Daimler AG on Friday, after racing previous Ford and General Motors Co.’s market valuations within the earlier two days.