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After record IPO: Elon Musk etches against Tesla rival rival

Rivian: E-Pickup R1T. (Photo: Rivian)

Rivian raised almost twelve billion dollars when it went public on Wednesday – a record for the current year 2021. And the share price has continued since then increased sharply. After the issue price was $ 78 per share, investors now have to pay more than $ 128 for a Rivian security. Market capitalization rose from just under $ 77 billion to over $ 125 billion. Rivian is the second most valuable automaker in the US after Tesla.

Rivian: Second most valuable US car manufacturer after Tesla

Tesla had only recently broken the $ 1 trillion barrier when it comes to market cap. However, unlike Rivian now, the evaluation did not come overnight. For comparison: Tesla was worth 100 billion dollars at the beginning of 2020 – when Elon Musks Group had already sold around 900,000 vehicles on the market after almost a decade.

So it’s no wonder that not only market observers are at a loss as to the exaggeratedly high-looking valuation. After all, Rivian has not yet made any significant sales and is deep in the red. Meanwhile, what is fueling the hopes is the mega-contract with Amazon, according to which Rivian should deliver 100,000 e-vans by 2030. In addition, the US electric car developer claims that it has already collected over 55,000 pre-orders for its first e-cars, the R1S e-SUV and the R1T pickup truck.

Meanwhile, Tesla boss Musk insisted on pointing out once again that reaching profitability and building a large production facility was the “real test” for the future to be rivals. There have been hundreds of auto startups in the history of the USA, but so far only Tesla has managed to stay in the black and produce cars in significant quantities.

Production and supply chain as challenges

It’s not the first time Musk etches Rivian, as reported by CNBC. In October, Musk had stated that prototypes were “trivial”. The challenge is to ramp up production and get the supply chain under control. Musk himself had spoken of a “production hell” a few years ago when it came to ramping up Model 3 production.

Which should also contribute to Musk’s bad mood regarding Rivian: Tesla accuses Rivian of Poach employees and steal trade secrets. In October, Tesla renewed the allegations. Rivian stole “highly protected” battery secrets. In the summer, apostates were caught red-handed. Rivian denies the allegations. A judgment is still pending on the matter.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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