Two Newly Hatched EV Makers, Rivian and Lucid, Surge to Ford and GM’s Level

They exceed or nudge close to the legacy automakers’ market caps. Shades of Tesla.

Fledgling electric vehicle (EV) makers have seen their shares tearing up the track lately—to the point they have surpassed or are close to traditional car companies. All this is a testimony to 2021’s scorching initial public offering (IPO) mania and the dominance of tech-oriented stocks, analysts say. Small wonder that the duo’s stocks took a breather this morning and flagged after their quick ascents.

Rivian Automotive, which went public last week, has seen its market cap vault to $130 billion—which is more than that of US legacy auto giants General Motors ($94 billion) and Ford Motor ($79 billion). Rivian is up 65% since its debut Nov. 9. This morning, the stock slipped back 9%.

Another newbie EV manufacturer, Lucid Group, sports an $86 billion market value. The stock has doubled since it went public in July via a special purpose acquisition company (SPAC) called Churchill Capital IV. Lucid’s stock fell today by a similar amount to Rivian’s.

Neither company is profitable, and they both have generated only a relative handful of cars.

This all is reminiscent of Tesla, the original EV tyro. Elon Musk’s company now boasts a whopping $1.1 trillion market cap, and the stock has leaped 126% over the past 12 months. Tesla (IPO: 2010) at last is churning our autos and even has turned a profit. Although it’s a slender one, compared to its lofty share price: Its price/earnings ratio (P/E) is a towering 350. But hey, Tesla is now a member of the S&P 500, a validation of its arrival if ever there was one.