Rivian R1T field pickup
The share price of electric car startup Rivian continued to climb on Thursday, rising about 10% a day after listing on the public market.
The market value of this Amazon and Ford-backed company has surpassed Ford and General Motors, with a valuation of approximately US$94 billion. This is still far behind Tesla’s market value of more than $1 trillion.
On Thursday morning, General Motors had a market value of 88.8 billion U.S. dollars, while Ford had a market value of 78.9 billion U.S. dollars.
Valuation means that Amazon’s 20% stake in the business is now worth more than $18 billion, while Ford’s 12% stake is worth more than $11 billion.
Given that Rivian has not yet established a mature business model, the third quarter revenue is expected to reach up to 1 million US dollars, so the price is particularly shocking. It stated in its prospectus that it expects to lose up to $1.28 billion in the quarter.
Rivian beat its competitors in the market with all-electric pickup trucks, but has not yet mass-produced its vehicles.
Amazon plans to use Rivian vehicles in its delivery fleet and has ordered 100,000 vehicles by 2030. It is expected that as early as next year, 10,000 Rivian vehicles will deliver Amazon packages.
-CNBC’s Lora Kolodny and Annie Palmer contributed to this report.
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Watch: Tesla, General Motors, Rivian and others compete for dominance of electric pickup trucks
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