Rivian IPO proves Common Motors is undervalued, says GM CEO

The huge valuations of electrical automobile start-ups resembling Rivian, which made its public debut Wednesday on the Nasdaq at the next inventory value and market cap than Common Motors, reveals the legacy automaker is “so undervalued,” GM CEO Mary Barra stated Wednesday.

Rivian’s inventory started buying and selling at $106.75 a share, a roughly 37% pop from its IPO value of $78 a share and a market valuation of $91 billion. That compares with GM at $60 a share and a market cap of $86.4 billion.

“What it highlights to me is the massive alternative. Common Motors is so undervalued,” Barra stated Wednesday with out particularly naming Rivian throughout The New York Instances DealBook convention. “I see it as big alternative for Common Motors to seize important extra worth.”

When requested whether or not her opponents’ valuations make sense, Barra stated she does not view them that manner.

“I take a look at each competitor as any individual that I respect. And that we’ve to be higher, be quicker, have autos that buyers need to have, remedy the possession equation,” she stated. “In order that’s the way in which I take a look at it. I’d say if something, it motivates me to work even more durable.”

Rivian is seen as one of many EV start-up frontrunners able to taking over electrical automobile chief Tesla, as GM and different conventional automakers make investments tens of billions of {dollars} within the rising market section.

GM was keen on investing in Rivian, however its largest crosstown rival, Ford Motor, ending up investing within the EV start-up as an alternative. Ford, which owns about 12% of start-up, satisfied Rivian CEO RJ Scaringe that Ford could be a greater match than GM, as not too long ago reported by the Wall Avenue Journal.

GM has introduced plans to take a position $35 billion in electrical and autonomous autos by way of 2025, because it targets outselling Tesla in home EV gross sales by then.