Rivian shares leap in market debut, topping value of Ford, GM

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Electric truck maker Rivian soared in its debut on Wall Street, making the company already worth more than traditional automakers Ford and General Motors.

In a stunning Wall Street debut, the value of electric truck maker Rivian now exceeds that of traditional Detroit automakers.NEW YORK - Electric truck maker Rivian soared in its debut on Wall Street on Wednesday, making the company -- which has produced very few vehicles so far -- already worth more than traditional automakers Ford and General Motors.

Shares in the company backed by Amazon and Ford leapt 50 percent in its first trades to $119.45 before easing back, taking its market capitalization to more than $100-billion, if stock options and other convertible shares are taken into account -- well above Detroit's legacy manufacturers. Rivian announced late Tuesday that it had raised $11.9-billion in its initial public offering, setting the share price at $78, in the largest IPO since 2014 when China's online giant Alibaba went public.

The red-hot startup is taking advantage of investor enthusiasm for the electric vehicle sector, where star performer Tesla recently surpassed $1-trillion market capitalisation. Rivian was founded in 2009 by Robert Scaringe, a car enthusiast who, after graduating from college, wanted to focus on less polluting forms of transportation rather than the traditional automobile."No one is even bothering to discuss unimportant issues like revenue or cash flow preferring instead to rely on the 'dreams' that are being sold by the management and its advisors," said Richard Windsor of Radio Free Mobile.

 

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