Rivian’s valuation surpasses Volkswagen’s after rebound

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(Bloomberg) – The strong five-day rally in Rivian Automotive Inc. shares caused the electric truck startup’s value to more than double since its commercial debut last week, while its market capitalization now outperforms Volkwagen AG.

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The shares rose 14% to US $ 169.70 in New York on Tuesday, 118% higher than the initial public offering price of US $ 78. That brought the company’s market valuation to around $ 150 billion, making Rivian the largest US company with zero revenue.

Rivian, which is backed by Amazon and Ford, surpassed Volkswagen’s market capitalization of $ 138.9 billion, as investors eager to enter the electric vehicle sector now have another stock to invest in besides the pioneer of industry, Tesla Inc.

Volkswagen is Europe’s largest automaker with around 10 million vehicle deliveries per year, making it number two in the world behind Toyota Motor Corp. Volkswagen generates around 250 billion euros (US $ 300 billion). in annual revenue and is targeting around € 15 billion in automotive clean net cash flow this year. The German industrial giant’s group of brands includes luxury automakers Porsche, Audi and Lamborghini, as well as Scania heavy trucks and Ducati motorcycles.

Meanwhile, Rivian, which is developing an electric pickup truck, the R1T, and an electric SUV, the R1S, began delivering some trucks in September, mostly to its own employees. However, it estimates that annual production will reach 150,000 vehicles at its main facility by the end of 2023.

The rally from the IPO also makes Rivian’s debut week the best of the year, just ahead of Affirm Holdings Inc., which gained 117% during its first five sessions. These data exclude IPOs that raised less than $ 1 billion.

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In recent weeks, EV stocks of all types and colors have seen increased interest from retail investors, with Rivian, Lucid and Tesla topping the list of most purchased assets on Fidelity’s retail platform on Tuesday. .

At one point during trading Tuesday, Rivian was worth more than nearly 90% of the S&P 500 companies, including stocks such as Goldman Sachs Group Inc., Boeing Co., Citigroup Inc., Starbucks Corp. and Caterpillar Inc.

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