Rivian soared as much as 16% on Monday with Biden set to sign a $1 trillion infrastructure bill.- The bill will include $7.5 billion for the buildout of a network of 500,000 charging stations.
- Rivian is up 93% since it went public last week, pushing its valuation to about $130 billion.
Rivian continued its post-IPO rally on Monday, surging as much as 16% to a record $150 per share as President Joe Biden plans to sign a $1 trillion infrastructure bill.
Part of the infrastructure bill is designed to accelerate the consumer adoption of electric vehicles by building out a network of 500,000 electric charging stations across the country. The bill allocates $7.5 billion to the project, with the idea being that increased charging accessibility will lower consumers' barrier to entry in the EV space.
Monday's rally in Rivian brought its post-IPO gains to 93%, based on its IPO price of $78 per share. The near week-long surge has pushed Rivian's valuation to as much as $130 billion, making it the second most valued auto-manufacturer behind Tesla and minting big gains for its early investors like Amazon and Ford.
That's despite the company's expectations to generate more than $1 billion in losses on about $1 million in revenue in the third quarter, according to its SEC filings. But Rivian can count on more than 50,000 pre-orders for its luxury electric trucks and a 100,000 electric delivery van order from Amazon, as well as ever-increasing demand for EVs.
Some think Rivian's sky-high valuation despite little revenues and no profits is a sure-sign that the
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-term if it can execute on its vision.