Electric van and truck maker Rivian Automotive started trading at $107 in its first day on the stock market, significantly above its $78 IPO price. Within minutes it hit $119.38 before easing back to just over $100.
Hype around the stock was supported by backing from online monolith Amazon and the company had a further heavyweight endorsement in the form of car manufacturer Ford, which has a stake in the company.
Amazon, as well as holding a 20% interest in the business, has said it will purchase 100,000 electric delivery vans from the firm.
FLAGSHIP PRODUCT
The company’s flagship product is arguably the R1T pick-up truck which was launched to some acclaim in September 2021. Founded in 2009 by automotive engineer RJ Scaringe the company has chalked up $2 billion worth of losses over the last two years.
UK-listed Third Point Offshore Investors (TPOU) has a position in the company.
Manager Dan Loeb observed of the R1T in recent commentary on the fund that the ‘clean sheet, technology-focused vehicle eliminated long-accepted compromises and delivers an experience that harnesses humanity’s innate adventurous spirit in an environmentally friendly way’.
He added: ‘Rivian stands out with a compelling brand, an excellent first vehicle, and a unique partnership with Amazon that allows them to scale quickly.
‘They are taking full advantage of the direct-to-consumer model/digital ecosystem to attack the full lifetime revenue potential from vehicles rather than simply an upfront sale.’
