𝙿𝚛𝚘𝚏𝚒𝚝𝚜? 𝙰 𝙻𝚞𝚡𝚞𝚛𝚢, 𝙽𝚘𝚝 𝙰 𝙽𝚎𝚌𝚎𝚜𝚜𝚒𝚝𝚢, 𝙵𝚘𝚛 𝙰 𝙼𝚘𝚍𝚎𝚛𝚗 𝙸𝙿𝙾
Rivian, a maker of "electric adventure vehicles", is officially a public company — one with an eye-watering valuation of ~$105bn after its share price rose almost 30% on its first day of trading. That makes it more valuable than Ford ($78bn), GM ($90bn) or Ferrari ($49bn).
Profit? Who needs it
It probably goes without saying, but Rivian does not make a profit — fitting the bill for most companies that go public these days according to data from professor Jay Ritter. Last year just ~20% of IPOs were for companies actually making money, a similar proportion to that found during the dotcom bubble of the late 1990s.
Revenue? Who needs it
Rivian's valuation is particularly stunning because the company has recorded less revenue in its 12-year life than most of the coffee shops in your area — in fact Rivian is yet to record any material amount of revenue.
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