Market history · New issues ·
Rivian lists at a value above Ford and GM
Rivian Automotive priced its IPO at $78 a share on 9 November 2021, valuing the company at $66.5 billion. Its shares rose 29% on the first day of trading on 10 November, giving it a value of about $86 billion, more than Ford, CNBC and Fortune reported, and the next day above General Motors as well.
The company was only beginning to deliver vehicles. The valuation reflected investors' enthusiasm for electric-vehicle makers at the end of a year of very high prices for growth shares. Within a week the stock had turned lower, falling 15% in a single session on 17 November.
The takeaway
A valuation can reflect a hope about the future rather than present earnings. When the hope shifts, so does the price.
Sources
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.