This EV maker is already valued more than GM and Ford on its debut

Amazon-backed Rivian Automotive Inc (NASDAQ: RIVN) debuted on Nasdaq at about $107 a share on Wednesday, well above the IPO price of $78 last night.

Rivian raised $11.93 billion via its IPO

The electric vehicle manufacturer sold 153 million shares to raise $11.93 billion via its IPO that valued it at $66.5 billion. But the blockbuster debut helped it cross the $100 billion mark this morning, which means Rivian is now valued more than the legacy automakers, including GM and Ford.  

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The underwriters have the option to buy another 20.7 million shares, which could bring in an additional $1.61 billion in funding.

At least $5.0 billion of this capital, Rivian confirmed, will be spent in Fort Worth, Texas, to set up a 2^nd EV factory it’s calling “Project Terra”. The new facility is expected to add to its annual capacity by 200,000 vehicles and create 7,500 jobs or more by 2027.

The pre-orders sure are promising

Amazon invested over $1.30 billion in Rivian ahead of its IPO to become its largest shareholder with a 20% stake. Ford stands at number two with a 12% stake, while another 5% belongs to Cox Automotive.

Rivian is far ahead of Tesla, General Motors, or Ford in the league of fully electric pickup trucks. It has already delivered 156 R1Ts as of October 31^st and its battery-electric SUV (R1S) is set to hit the market in December.

According to the EV maker, 55,400 customers in the United States and Canada have already pre-ordered R1Ts and R1Ss. It expects to clear the backlog in the next 25 months. On top of that, there’s an order for 100,000 electric delivery vans from Amazon as well.

Rivian, however, is yet to generate real revenue. It has guided for an up to $1.28 billion in net loss for the quarter that concluded on September 30^th.