Raven, an electric truck maker, is growing in initial business after its IPO.
Shares of Raven, which has ambitious plans to build electric trucks and delivery vans, rose on the first day of trading on Wednesday, pushing the company’s market value much higher than that of major manufacturers before launching major production. done.
Raven put its initial public offering price at $ 78 per share on Tuesday. It traded up 37%, at $ 106.75, giving it a market capitalization of over $ 90 billion, more than Ford Motor’s $ 80 billion and General Motors’ $ 86 billion.
The company has just started selling its vehicles. By the end of last month, it had delivered only 156 pick-ups, which are being marketed to well-performing customers who like to go out.
In the offer, Rivian raised about ڈالر 12 billion, making it the largest IPO in recent years. The company expects to spend billions of dollars to expand its production facilities. In the first half of the year, Raven lost $ 994 million, almost as much as in the whole of 2020, when it lost $ 1.02 billion.
Investors have indicated they are willing to ignore the losses of some electric vehicle companies in the hope that they will eventually make big profits as electric vehicles make up a growing share of the auto market.
In addition, Tesla’s success suggests that a new entry could outperform older carmakers. Its stock has risen nearly 50 percent this year, giving the company a market value of about $ 1 trillion despite a sharp decline this week.
Rivian can also attract buyers because of its relationship with Amazon, which has ordered 100,000 delivery vans from Rivian and has a large stake in the company. Ford is also an investor.
For a time, Tesla faced many problems with production, which often hurt its stock price and left the company short of cash. Raven’s chief executive, RJ Scaringe, now has to try to increase production at a time when supply chains are not operating as efficiently as they used to before epidemics.
In addition to its pick-up, Rivian plans to build an SUV. It recently said it did not expect to meet 55,400 truck and SUV orders by the end of 2023.