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Rivian continues rally after IPO and is already the third most valuable car industry

By Alan Ohnsman

Rivian, the most funded start-up electric vehicle company in U.S. history, continues its rally in the stock market after its debut on the Nasdaq dashboard a few days ago – with the result that the company from Irvine, California has already won the title of the third most valuable car in the world, after Tesla at the top and Toyota at the second.

Shares of Rivian jumped about 15 percent to close at $ 149.36 on Monday, an increase that boosted its market capitalization to $ 146.3 billion, leaving it behind only Toyota, which has a market capitalization of $ 255. 5 billion dollars and Tesla that “leads” the race with a capitalization of 1 trillion. has already surpassed the global giant Volkswagen, with a market value of $ 140 billion, and its share has recorded 38% gains since entering the board on November 10.

The startup, which is backed by Amazon and started building the R1T electric van just last month, is not expected to deliver many vehicles this year. However, investors seem to expect to benefit from financial support for the construction of public charging stations for electric vehicles, which is included in the recently signed US government infrastructure bill, but also hopes that more generous incentives will be given to consumers to turn. in electric cars and trucks.

US President Joe Biden signed the 1.2 trillion-dollar cross-party package on Monday. which includes new $ 7.5 billion in spending that could help build an additional 400,000 electric vehicle charging stations, according to IHS Markit.

“The Biden administration’s investment is not excessive, but it will have a significant impact on the development of electric vehicle charging infrastructure in the United States,” said Mark Boyatzis, head of IHS Markit’s global automotive technology division. will be sufficient in the midst of the rapid circulation of electric vehicles, demonstrating the need for additional support from municipal resources, utilities and private investment in order to fill the gap ”.

The automotive technology analyst estimates that the number of electric vehicles in circulation in the US will increase from about 1.5 million at the end of 2020 to 9.3 million vehicles by 2026.

The race of electric vehicles

Rivian has significant assets to compete with Tesla and other electric vehicle companies, having raised at least $ 11 billion from investors before entering the stock market, and raised an additional $ 12 billion in its initial public offering.

The company has also received initial orders for at least 50,000 R1T and R1S SUVs to be built at its Illinois facility, along with 100,000 electric delivery trucks ordered by Amazon. The company is also in talks to build a second plant in the United States, which could be in Georgia, according to the Atlanta Journal-Constitution.

Rivian’s capitalization boom has also boosted the fortune of its founder and CEO, RJ Scarring. Forbes estimates his net worth was $ 2.6 billion on November 15. Surprisingly, the Tesla stock is steadily declining as the value of the Rivian increases. The decline began last week after Tesla CEO Elon Musk said he would sell 10 percent of the stake in the company, in part to pay taxes on his Tesla stock options.

Tesla fell 1.9% to $ 1,013.39 at the Nasdaq meeting on Monday, and has been losing nearly 18% since closing at a all-time high of $ 1,229.01 on November 4.

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Source From: Forbes

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