Rivian, a maker of "electric adventure vehicles" (glossy promo video here), 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. It's also a complete reversal of the early 1980s, when 80% of IPOs were for companies that were profitable.
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. Early reviews for its electric pick-up truck are generally quite positive, but how long can a company maintain a $100bn+ valuation without any revenue? We're about to find out.