Electric car maker Rivian Automotive is being tipped to become a long-term rival for Tesla after the firm made a spectacular start to life on New York’s Nasdaq stock exchange.
The start-up raced out of the traps yesterday (Wednesday) and briefly saw its stock market value eclipse $100bn (£75m).
Values remained high throughout the day with shares eventually closing up 29.1 per cent, or $22.73, at $100.73 (£75.19).
The $100bn valuation has sent shockwaves around the automotive industry, with Ford – which owns shares in Ravian – valued at $77.4bn. Elsewhere, General Motors has a value of $86bn.
The results have set tongues wagging that the company could be set to rival Tesla, which recently become the first car maker to have a stock market value of $1 trillion.
Rivian is expected to produce only 1,200 vehicles this year, the Times reports.
The start-up raised $11.9 billion by selling 153 million shares at $78 apiece.
Its opening day success made it the sixth-biggest initial public offering on the US stock market, according to Bloomberg.
The share sale on Wednesday was the largest since Facebook was floated in 2012.
Rivian, founded in 2009 by Robert ‘RJ’ Scaringe, 38, counts Amazon among its biggest investors.
The online giant recently confirmed a 20 per cent stake and has ordered 100,000 electric vehicles, to be delivered by 2030.
The Rivian range includes the R1T pick-up truck and the R1S SUV
Bosses are aiming to increase production to an annual rate of 150,000 by the end of 2023.
They are then hoping for a million units by the end of the decade.