{"id":212211,"date":"2021-11-10T17:04:16","date_gmt":"2021-11-10T22:04:16","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=212211"},"modified":"2021-11-10T17:04:23","modified_gmt":"2021-11-10T22:04:23","slug":"rivian-new-technology-goes-public-old-school-enjoys-big-first-day-gain","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2021\/11\/rivian-new-technology-goes-public-old-school-enjoys-big-first-day-gain\/","title":{"rendered":"Rivian: New Technology Goes Public Old School, Enjoys Big First-Day Gain"},"content":{"rendered":"\n

Several EV makers have been seeking to lay claim to being Tesla\u2019s top competitor, but after seeing its stock close up nearly 30% on its first day of trading, Rivian may be the best one to have the title.<\/p>\n\n\n\n

\"First
Rivian CEO R.J. Scaringe drove the first Rivian Blue R1T off the production line. Less than two months later, the company went public.<\/figcaption><\/figure><\/div>\n\n\n\n

Less than two months after building its first production vehicle, the R1T electric pickup, to a customer, the company went old school in its move to the stock market with an initial public offering on Nasdaq.\u00a0<\/p>\n\n\n\n

The company\u2019s stock opened at $78 per share \u2014 giving it a valuation of $66.5 billion \u2014 with 153 million shares of common stock available, which was bigger than initially planned. The stock jumped up to nearly $120 per share midday before settling down to close at $100.73 per share.<\/p>\n\n\n\n

The gross proceeds from the offering to Rivian, before deducting underwriting discounts and commissions and other offering expenses payable by Rivian, are expected to be approximately $11.9 billion, excluding any exercise of the underwriters\u2019 option to purchase additional shares. The company sent out an email not long after the market opened.<\/p>\n\n\n\n

\"RJ
Rivian founder and CEO RJ Scaringe and Ford Chairman Bill Ford Jr. must still be all smiles after Rivian’s stock jumped nearly 30% today.<\/figcaption><\/figure><\/div>\n\n\n\n

\u201cToday we started our journey as a publicly traded company \u2014 this is the result of the incredible efforts of our team and your enthusiasm and support for what we are building. Thank you,\u201d the company wrote in the email.

\u201cWe made the decision to go public to help us achieve the largest possible impact. Becoming a public company enables us to accelerate our efforts to help society transition to sustainable transportation and energy systems.\u201d<\/p>\n\n\n\n

Big winners<\/h2>\n\n\n\n
\"Ford
Ford is likely to take some of the profits from its Rivian investment and roll them into its own electric vehicle development program.<\/figcaption><\/figure><\/div>\n\n\n\n

Naturally, Rivian sees a massive benefit from the strong response from investors, but it\u2019s not the only one benefitting. <\/p>\n\n\n\n

Amazon is one of the biggest investors in the company and will see a nice multi-billion bump to its bottom line; however, the second biggest winner may be Ford, which has also invested more than $800 million in the startup electric vehicle maker.<\/p>\n\n\n\n

Ford also holds about $400 million of convertible debt sold by Rivian. The stock obtained on conversion is included in the 102 million shares Ford owns.<\/p>\n\n\n\n

The company\u2019s not addressed what it will do with its investment other than describing how it will record that profit on its books during its most recent earnings call. In fact, at one point during the day, it was estimated Ford\u2019s stake in Rivian was worth about $10 billion \u2014 more than 10% its own market cap of about $80 billion. Rivian\u2019s market cap settled at $98.9 billion at close: higher than either Ford or General Motors.<\/p>\n\n\n\n

However, the company\u2019s not been specific about what it plans to do with that influx of cash, but it\u2019s safe to assume some of that money will go to further development of its own electric vehicles.<\/p>\n","protected":false},"excerpt":{"rendered":"

Several EV makers have been seeking to lay claim to being Tesla\u2019s top competitor, but after seeing its stock jump nearly 30% on its first day of trading, Rivian may be the best one to have the title. Get details at TheDetroitBureau.com.<\/p>\n","protected":false},"author":4389,"featured_media":210725,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5,1908,1164,13,9],"tags":[1325,3485,2397,1815,3486],"make":[],"post-state":[],"category_old":[],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/212211"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/4389"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=212211"}],"version-history":[{"count":11,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/212211\/revisions"}],"predecessor-version":[{"id":212224,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/212211\/revisions\/212224"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/210725"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=212211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=212211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=212211"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=212211"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=212211"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=212211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}