Rivian expands post-IPO rally to 93%, with Biden expected to sign $ 1 trillion infrastructure bill that includes billions for electric cars

Rivian
Rivian

  • Rivian rose as much as 16% on Monday, with Biden ready to sign a $ 1 trillion infrastructure bill.
  • The bill will include $ 7.5 billion for the construction of a network of 500,000 charging stations.
  • Rivian has risen 93% since it went public last week, pushing its valuation to about $ 130 billion.

Rivian continued its post-IPO rally on Monday, rising as much as 16% to a record $ 150 per share as President Joe Biden plans to sign an infrastructure bill of $ 1 trillion.

Part of the infrastructure bill is designed to accelerate consumer adoption of electric vehicles by building a network of 500,000 electric charging stations across the country. The bill allocates $ 7.5 billion to the project, with the idea that increased charging availability will lower consumers’ barrier to access to electric cars.

Monday’s rally in Rivian brought its post-IPO gains to 93%, based on its listing price of $ 78 per share. The nearly week-long increase has pushed Rivian’s valuation to as much as $ 130 billion, making it the second most valued carmaker behind Tesla and creating huge gains for its early investors like Amazon and Ford.

That is despite the company’s expectations to generate more than $ 1 billion in losses of about $ 1 million in revenue in the third quarter, according to its SEC filing. But Rivian can count on more than 50,000 pre-orders for its luxury electric trucks and an order for 100,000 electric vans from Amazon, as well as an ever-increasing demand for electric cars.

Some believe that Rivian’s soaring valuation despite small incomes and no profits is a sure sign that the stock market is in a massive bubble, including the famous short seller Michael Burry. Burry tweeted last week, referring to Rivian: “More speculation than the 1920s. More overestimation than the 1990s.”

Rivian’s valuation is in nosebleed territory, but if Tesla has taught investors anything, it’s that the EV start-up has plenty to gain in the long run if it can execute on its vision.

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