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The stock market valuation of certain startups is waving the middle finger to decades of innovation, manufacturing, sweat, blood and tears.
Since going public last week, EV startup Rivian has more than doubled in value. With a USD 146.7 billion market cap, it’s now the third-most valuable automaker in the world behind Tesla and Toyota.
Sorry Volkswagen, you got overtaken by Rivian (who?) yesterday.
Here's The Memo You May Have Missed
Here's The Memo You May Have Missed
Rivian has no material revenue and has delivered 156 electric pickup trucks as of October 31.
In contrast, the folks at Volkswagen crank out 10 million vehicles per year, generating annual revenues of around USD 300 billion.
And we should not get all personal with VW because Rivian is also more valuable than nearly 90% of S&P 500 companies, like, hold your breath, Starbucks, Boeing, and Goldman Sachs.
And then there’s another startup - Lucid Motors. This EV maker, founded by a former Tesla exec, surged nearly 24% in market cap yesterday after the company reported its first quarterly earnings.
As Lucid As It Can Get
Its first model, the Lucid Air, just won MotorTrend’s 2022 Car of the Year award. The Air has a range of 520 miles—the industry’s best.
Compared to Rivian, Lucid is a revenue-generating machine, bringing in $232,000 in sales in Q3.
This Boggles The Mind
Market experts following this bizarre trend warn that this surge of EV stocks with little-or-no revenue is a sign of “froth” in the market.
Market experts following this bizarre trend warn that this surge of EV stocks with little-or-no revenue is a sign of “froth” in the market.
Per Bloomberg, EV startups are very popular with individual traders: Tesla, Rivian, and Lucid were at the top of Fidelity’s list of most bought assets yesterday.
With many stock market investors aspiring to become millionaires overnight, no one wants to miss out on the next Tesla.
With many stock market investors aspiring to become millionaires overnight, no one wants to miss out on the next Tesla.