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On Rivian’s successful IPO, Elon Musk says, “The true test is to get high output, break-even cash flow.”
Rivian, Tesla’s rival automaker, has had a fantastic week, with a blockbuster IPO that increased its market worth to more than $100 billion. Elon Musk, Tesla’s CEO, responds, “There have been hundreds of automotive companies, both electric and combustion, but Tesla is the only American carmaker to achieve large volume manufacturing and positive cash flow in the last 100 years.”
In a tweet on November 12, Musk further went on to say that Rivian’s true test will be achieving high production and having a breakeven cash flow.
Rivian’s stock soared 53 percent in its Nasdaq debut, as investors look for the next big winner in the electric vehicle sector. Rivian’s market worth was $85.9 billion at the closing price of $100.73, somewhat higher than Ford’s and slightly lower than GM’s.
The next day, which has delivered approximately 150 electric pickup vehicles, largely to staff, surpassed General Motors to become the United States’ second most valuable carmaker.
This year, Rivian’s goal is to create 1,000 electric vehicles. The R1T electric truck was released in September, while the R1S electric SUV is scheduled to be released in December.
Rivian’s IPO is the largest in the world this year, and despite a lack of income, the automaker managed to raise almost $12 billion in its market debut.
In the company’s IPO prospectus, CEO R.J. Scaringe stated that the truck, SUV, and crossover segments presented a significant chance to demonstrate how a ‘clean sheet, a technology-focused vehicle might erase long-accepted compromises.’
He explained. “We intended to build our brand by providing a combination of efficiency, on-road performance, off-road capabilities, functional utility, and product refinement that just did not exist in the market”.