- GM CEO Mary Barra said Wednesday that the massive valuation of electric vehicle start-ups like Rivian shows General Motors is “undervalued.”
- Rivian’s stock is indicated to open at $125 per share, which means a valuation of $106.6 billion and a 60% pop from the IPO price of $78 per share.
- “This is a huge opportunity for me. General Motors is so undervalued,” Barra said without specifically naming Rivian.
The heavy valuation of electric vehicle start-ups like Rivian, which is making its public debut on the Nasdaq on Wednesday at a higher stock price and market cap than General Motors, indicates that the legacy automaker is “so undervalued,” GM said. CEO Mary Barra said. Wednesday.
Shares of Rivian are indicated to open at $125 per share, a 60% pop from the IPO price of $78 per share, and mean valuation of $106.6 billion. This compares to GM at $60 per share and a market cap of $86.4 billion.
“It’s a huge opportunity for me. General Motors is so undervalued,” Barra said Wednesday during The New York Times dealbook conference without specifically naming Rivian. “I see this as a huge opportunity for General Motors to achieve significant greater value.”
Asked if there is any point in evaluating her competitors, Barra said she doesn’t see them that way.
“I look at every competitor as someone I respect. And we have to be better, be faster, have vehicles that consumers want, solve the ownership equation,” she said. “So that’s how I look at it. I would say that if anything, it motivates me to work even harder.”
Rivian is seen as one of the EV start-up pioneers capable of taking on electric vehicle leader Tesla, as GM and other traditional automakers invest billions of dollars in the emerging market segment.
GM was interested in investing in Rivian, but its biggest crosstown rival, Ford Motor, ended up investing in an EV start-up instead. Ford, which owns about 12% of the start-up, convinced Rivian CEO RJ Scaring that Ford would be a better fit than GM, as recently reported. by Wall Street Journal.
GM has announced plans to invest $35 billion in electric and autonomous vehicles by 2025, as it aims to oust Tesla in domestic EV sales by then.