An EV startup: Rivian’s stock nearly doubled in just two weeks

Electric-truck maker Rivian is not much like Tesla: Its parent company, Rivian Automotive LLC, has yet to present any of its models publicly, and it does not plan to begin deliveries until after 2020….

An EV startup: Rivian’s stock nearly doubled in just two weeks

Electric-truck maker Rivian is not much like Tesla: Its parent company, Rivian Automotive LLC, has yet to present any of its models publicly, and it does not plan to begin deliveries until after 2020. Its CEO, Kevin P. Rauckman, spends much of his time in Wisconsin’s Badger State capital, Madison, where Rivian is headquartered, as it finds dealers to sell its technology. And to entice consumers, Rivian — which is all-electric and funded by Hyundai-Kia and Total SA — plans to sell at least three models, called the Rivian R1S, R1T and R1TSE. In its most recent filing with the Securities and Exchange Commission, it listed nine active dealers in North America. While Rivian’s resale value as an actual brand is still up in the air, demand for the financing terms is strong, and Rivian has about $811 million in cash on hand. But right now, Rivian’s projected cash flows from its production line are pessimistic, at least $8 million per year.

Rivian, which is the latest electric startup to hit the market, expected some of its launch investors to put in $3 billion to get Rivian rolling. But the company hasn’t received any money from them yet, and CEO Kevin P. Rauckman says the goal is to raise that money before it starts taking orders from consumers. Despite that situation, Rivian stock had jumped in the wake of its May 17 initial public offering, largely because of investors’ excitement over Tesla’s IPO and its optimistic sales forecasts. Rauckman told The New York Times that investors had been saying, “ ‘Tesla’s a success, so why can’t we do this for $100 million and get that much of an opportunity?’ ”

But today, Rivian’s stock closed up $2.15 (23.14 percent) to $12.35, which is a huge gain after two weeks of relatively depressed trading. No shares were available for trade when e-mails went out at 5 p.m. ET this afternoon, and the company’s not saying why. But a Rivian spokesperson suggested there were reasons investors may have been a little skittish about Rivian’s prospects when it was deciding to take out more stock. “Today’s closing price, given the active market, is a reflection of overall market sentiment, not necessarily indicating investors believe what Rivian is planning to do,” the spokesperson said.

Read the full story at Quartz.

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