Rivian Automotive Goes Public on Nasdaq: Electric Vehicle CheckpointNovember 11, 2021
Table of Contents
Rivian Automotive (RIVN) – Get RIVIAN AUTOMOTIVE, INC. Report, the electric vehicle maker backed by e-commerce giant Amazon.com (AMZN) – Get Amazon.com, Inc. Report and Ford Motor (F) – Get Ford Motor Company Report, debuted on the Nasdaq Tuesday.
The Tesla competitor Rivian began trading at $106, up 36% from its offering price of $78 a share. The all-electric truck and SUV maker had filed to offer 135 million shares at between $57 and $62. The stock closed up 29% Wednesday at $100.73.
The company immediately eclipsed other automakers, including General Motors (GM) – Get General Motors Company (GM) Report, worth $85 billion, and Ford, worth $79 billion. The last IPO to hit that high was Facebook’s (FB) – Get Facebook, Inc. Class A Report 2012 debut, which reached a peak market cap of $104 billion.
Rivian said in its prospectus that it will lose up to $1.28 billion in the third quarter, while revenue will range from zero to $1 million. The IPO is expected to bring in $11.9 billion.
Video: Rivian IPO: Everything You Need to Know As Tesla Competitor Makes Public Debut
Video: Rivian, Tesla, Lordstown: 3 EV Stories To Watch
Rivian is the latest EV company to attract investor capital at a lofty price without yet proving that it has a sustainable business model. Tesla (TSLA) – Get Tesla Inc Report, by contrast, recently touched a $1 trillion market cap, but its market value has since fallen below $1 trillion.
Tesla stock has been sliding ever since CEO Elon Musk suggested he would sell 10% of his stake.
Unlike Tesla, however, there are currently no Rivian EVs on the road. The company said in its prospectus that it has a backlog of 55,400 pre-orders for its R1T and R1S electric vehicles. The R1T starts at $67,500, while the R1S is an SUV starting at $70,000. Orders are expected to be filled by the end of 2023.
Tesla-rival and Chinese automaker Geely (GELYF) reportedly plans to launch its new heavy-duty electric truck, designed for the global market, by 2024, the Shanghai company told cable news network CNBC on Monday.
Geely’s commercial vehicle group, Farizon Auto, is planning to roll out the new Homtruck in 2024 with an eye on international markets, including Europe, Korea, Japan and North America, Farizon Auto Chief Executive Mike Fan told CNBC in an interview.
The big rig Homtruck will have different power options including methanol hybrid and pure electric, CNBC reported. Methanol-powered batteries are a technology Geely has been investing in for some years and some of its models currently have this power option. Farizon told CNBC the Homtruck’s batteries can also be swapped out, which cuts down on the need to charge.
Tesla has delayed the production of its semi-truck until 2022, citing the limited availability of battery cells. Production plans for its new electric Semi truck went into low gear because the special battery cells the truck needs are in short supply.
Here are the top electric vehicle stocks to watch:
Tesla’s Elon Musk Indicated Intention to Sell; EV Titan Receives Price Target Boost of Bank of America
Tesla shares nudged lower Wednesday despite a price target boost from Bank of America that could provide some support for a stock that has shed $200 billion in market value over the past two sessions. Bank of America analyst John Murphy lifted his price target on the clean-energy carmaker by $200, to $1,200 per share, following a two-day slump triggered in part by founder and CEO Elon Musk’s suggestion that he could sell as much as 10% of his stake in the group.
Musk indicated his intention to sell in a weekend Twitter poll — curiously coming just days after his brother, board member Kimbal Musk, filed to sell nearly a billion in shares himself — that could lead to a Securities and Exchange Commission filing in the coming days. Musk could face a $5 billion tax bill if, as he has indicated, he abides by the result of the weekend poll and sells around $21 billion worth of Tesla shares somewhere in the region of last Friday’s closing price of $1,222.09 each.
TheStreet Quant Ratings rates Tesla as a Buy with a rating score of B.
Ford Offers $2.5 Billion Unsecured Green Bond to Investors
Ford offered a $2.5 billion unsecured green bond to investors, days after the American carmaker launched its sustainable-financing framework and said it would buy back higher-priced debt. The move comes as President Joe Biden is set to sign the administration’s $1.2 trillion infrastructure bill, which includes major funding for electric-vehicle and other clean-energy projects.
Ford said that it would allocate proceeds from the bond offering to fund investment in its battery-powered electric vehicle portfolio. “We’re again putting our money where our mouth is, prioritizing and allocating capital to environmental and social initiatives that are good for people, good for the planet, and good for Ford,” John Lawler, Ford’s chief financial officer, said in an interview last week, according to Bloomberg.
TheStreet Quant Ratings rates Ford as a Buy with a rating score of B.
EVgo (EVGO) – Get EVGO, INC. Report shares surged on Tuesday after the owner and operator of the largest electric vehicle charging network in the U.S. said it is partnering with auto giant General Motors to triple the number of fast-charging EV stalls on American roads. The companies announced the collaboration, which will take advantage of the recently passed infrastructure bill to add an additional 500 high-powered DC fast charging stalls to its network, bringing the total to 3,250 through 2025 and extending the geographic reach from 40 metropolitan markets to 52.
The infrastructure collaboration builds on GM’s commitment to offering zero-emissions vehicles across a range of price points. The new stations added to the EVgo network will continue to be powered by 100% renewable electricity, EVgo said.
TheStreet Quant Ratings rates GM as a Buy with a rating score of B.
Xpeng EV Deliveries Rose 233% in October
Xpeng (XPEV) – Get Xpeng Report said it delivered 10,138 new electric vehicles to customers in October, up 233% from a year earlier and topping 10,000 shiny new EVs handed over to Chinese consumers for a second straight month. Xpeng said it delivered 6,044 of its P7 sedans, a gain of 187%, and 3,657 of its G3 and G3i smart SUVs. The company said it delivered 437 P5 sedans, which were launched in September. Xpeng deliveries fell slightly from 10,412 in September.
The numbers indicate another strong month of EV sales in China, the world’s biggest market for electric vehicles. NIO (NIO) – Get NIO Inc. Sponsored ADR Class A Report delivered 10,628 vehicles in September, a rebound from August. Li Auto (LI) – Get Li Auto Report delivered 7,094 vehicles in September, as chip shortages hit the automaker.
TheStreet Quant Ratings does not have a rating for Xpeng.
Lordstown Motors Names Edward Hightower as New President
Lordstown Motors (RIDE) – Get LORDSTOWN MOTORS CORP. Report was off slightly Wednesday as the electric truck maker announced several executive appointments including the hiring of an auto industry veteran as its new president. Edward Hightower will become Lordstown’s president effective Nov. 29, replacing Rich Schmidt, who has stepped down from the position.
Hightower has 30 years of experience serving in product development, engineering, manufacturing, and commercial, the company said in a statement, as well as serving in senior executive roles between Ford, BMW, and General Motors.
TheStreet Quant Ratings doesn’t have a rating for Lordstown Motors.