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Rivian Stock Surges in Closely Watched IPO

Published 11/10/2021, 01:32 PM
Updated 11/10/2021, 01:34 PM
© Reuters

By Sam Boughedda

Investing.com — Rivian Automotive Inc (NASDAQ:RIVN) made a strong start to life as a public company on Wednesday, with its shares soaring on its debut. 

In what is one of the largest IPOs ever, the American electric vehicle company priced its offering at $78, which was above the anticipated $72 to $74 range. However, the stock's first trade was at $106.75, almost 37% above the IPO price. At the opening price, it's market value was greater than that of Ford and General Motors (NYSE:GM).

The company, which has backers including Amazon and Ford, raised nearly $12 billion from the IPO after selling 153 million shares. 

At the end of October, Rivian had delivered 156 Rivian R1T pickups. However, the company told investors that nearly all of the vehicles were delivered to employees. 

It has plans to produce over 1,000 vehicles by the end of the year. 

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EV companies going public with ridiculous valuations are one of the ways in which wealth transfer takes place from the general public to wealthy individuals / funds including ME monarchies. I hope US individual investors pause and understand the odds stacked against them to make any money of these get rich schemes. How can a company with practically no sale beat Ford and GM valuation. Yes, I understand DCF and future growth. But that is bull unless I am proven wrong as the projections are too good to be true.
Lol crazy valuation
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