Tesla Inc (NASDAQ: TSLA) CEO Elon Musk on Thursday took a shot on the valuations of rivals Rivian Automotive Inc. and Lucid Air Inc (NASDAQ: LCID).
What Occurred: Musk was responding to a tweet that in contrast the supply numbers and the valuations of Tesla when it went public to these of the 2 rivals.
If it potential to start out an EV firm with out transport any vehicles & get a valuation lower than a billion {dollars}!?
— Elon Musk (@elonmusk) October 14, 2021
Lucid is a pre-production electric vehicle maker that went public in July in a SPAC with Michael Klein’s Churchill Capital Corp IV at a valuation of $33 billion.
Rivian, which is backed by Amazon.com Inc (NASDAQ: AMZN) and Ford Motor Co (NYSE: F), is claimed to be eyeing elevating $80 billion within the IPO. The electrical car startup in September began rolling out its extremely anticipated R1T plug-in pickup.
Tesla had delivered 1,400 electrical vehicles when it went public in June 2010 at a valuation of $1.7 billion, the tweet famous. Tesla’s present market cap is at round $803 billion.
Musk mentioned “these are unusual days” as firms that haven’t shipped any vehicles are capable of safe valuations in billions of {dollars}.
See Additionally: Ford Exits Rivian Board Ahead Of EV Startup’s IPO
Why It Issues: This isn’t the primary time Musk has made a touch upon Rivian’s anticipated valuation. In August, Musk mentioned Rivian ought to have delivered no less than one car per billion of its valuation earlier than its IPO.
Don’t need to be unreasonable, however perhaps they need to be required to ship no less than one car per billion {dollars} of valuation *earlier than* the IPO?
— Elon Musk (@elonmusk) August 28, 2021
The electrical car makers have scored valuations close to to legacy rivals like Ford, which has a valuation of about $61 billion, and Common Motors Co’s (NYSE: GM), which has a valuation above $80 billion, whereas having made a fraction of the gross sales on optimism surrounding the roles electrical autos would play in the way forward for mobility.
Value Motion: Tesla shares closed 0.89% greater at $818.32 on Thursday.
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Photograph: Courtesy of Nvidia Corp. by way of Flickr
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