By Dhirendra Tripathi
Investing.com – Rivian stock (NASDAQ:RIVN) surged 11% Tuesday as the investor frenzy for electric vehicles intensifies amid a broader push for green energy and a less carbon-intensive world.
The stock debuted on the Nasdaq on November 11. The issue price was set at $78 and the company was valued at almost $86 billion at the end of its first day as a listed company. The market cap has now surged to $147 billion for an automaker that is yet to produce 1,000 vehicles. It’s valued at more than half of world’s largest carmaker, Toyota (NYSE:TM), and more than century-old General Motors (NYSE:GM) and Ford Motor (NYSE:F), which happens to be a Rivian shareholder.
Tesla (NASDAQ:TSLA), Rivian’s rival, and the world’s largest maker of electric vehicles, has a market value of over $1 trillion.
The global auto industry has sharply pivoted to electric vehicles in recent years as climate change becomes more adverse and world opinion turns against use of fossil fuels.
U.N. climate talks in Glasgow, Scotland, concluded Saturday with a deal that targeted fossil fuels as the key driver of global warming. While there was a consensus on reducing fuel subsidies, ways to achieve it and fund the poor countries to ensure their transition to greener technologies remained elusive.