Guess who are the top 3? Tesla and Toyota are No. 1 and 2. Rivian just surpassed Volkswagen to take third place, 🥉 after it went public and its share price more than doubled in the past week.
Wait… who’s Rivian? 🚘
It’s a Tesla rival – backed by Amazon (with 20% ownership) and Ford (with a 14% stake). But it focuses more on larger cars – electric trucks, SUVs, and delivery vans.
Zero revenue but now the No. 3: It went public last Wednesday (stock ticker: “RIVN”), and its shares more than doubled within a week. Read our previous story about its IPO.
- But it’s losing money 💰 – nearly USD 1 bln in the first half of 2021. It only started delivering cars to customers two months ago, but most of them have gone to its own employees.
No revenue..why are investors pouring into Rivian?
As those who may have missed out on Tesla a decade ago don’t want to miss another possible EV giant again.
- Not a big concern? 🤔 Tesla only made its first full-year profit in 2020, a full 10 years after it IPO’ed. It just recently made the 1 tln dollar club.
Rising too quickly?
As investors flooded in, Rivian’s stock price shot up nearly 120% after its IPO. 📈 But it paused the weeklong monster run on Wednesday as investors’ speculation eased – stock price retreated 15% on Thursday, and another 15% overnight.