The EV start up Rivian Automotive Inc, recently surpassed Volkswagen in market cap valuation leaping past the $143 billion mark. It came as a huge shock as the company practically has no sales.
The company’s (RIVN) stocks jumped by more than 10% today and hit $164.60 in New York. This shows a rise of 111% from the initial public offering of $78. In addition to that, it brought the company’s market valuation to $143.5 billion. Also, it topped the list of biggest U.S. companies with no sales.
Data reveals that Volkswagen delivered 9.3 million vehicles last year. Whereas, Rivian just produced 56 R1Ts and delivered 42 of them in total as of late October, 2021. Further, it is to be noted that RIVN’s capitalization is more than that of Caterpillar, Lockheed Martin and IBM.
Amazon backed Rivian, made its way into the stock market just last week. Hence, surpassing the German car Giant Volkswagen in valuation has been a big deal. The new entrant is now worth more than Volkswagen.
Earlier this week, Rivian crossed the valuation mark of $100 billion with its debut in the stock market. Its stock prices surged as much as 53 per cent in its Nasdaq debut on Wednesday, flowing in $12 billion in fresh cash on the first day of its trading. Moreover, it surpassed Ford’s market cap of $79.4 billion in its initial phases. However, it is far behind the most-valued EV car-maker, Tesla Inc., with a market cap of $1 trillion.
The achievements of the company are mostly a result of its backing by Amazon. Over 20% of its stock is owned by Amazon, hence fuelling up the soaring stock prices.
As of now, RIVN’s stock price is valued at $162.07 with an increase of 8.33% in the past 24 hours.