Here's How Much Ford And Amazon Made On Rivian's Stock Debut

Electric vehicle startup Rivian Automotive Inc’s RIVN blockbuster trading debut on Wednesday is estimated to have fetched early investors Amazon.com Inc AMZN and Ford Motor Co F massive sums.

What Happened: Both Ford and Amazon invested in Rivian in 2019 and owned about 13% and 20% in the electric vehicle maker leading up to the initial public offering. 

Ford bought Rivian shares at an estimated $820 million in Rivian in equity and through convertible notes, according to the EV maker’s initial public offering. Amazon had invested $1.345 billion in Rivian.

These investments were worth $10 billion and $16 billion, respectively, based on Rivian stock’s closing price on Wednesday.

See Also: Why Ford CEO Is Warning Automaker's Employees To Take Tesla Seriously: 'We Can't Ignore This Competition Anymore'

Sky-high Valuation: Rivian has delivered 156 R1T vehicles and made about 180 units as of October. The RJ Scaringe-led Rivian is looking to ramp up production and reportedly aims to launch more electric models and build at least 1 million electric cars before 2030. In spite of being at a nascent stage in terms of production, Rivian valuation surpassed $100 billion on first day of trading.

In comparison, legacy automaker Ford and General Motors Co GM — which are both spending billions of dollars to switch to a fuller electric vehicle portfolio — have lower valuations.

GM ended the day with a $86 billion market cap, higher than Ford’s $77 billion.

Rivian scored a compliment from Ford CEO Jim Farley on the blockbuster IPO.

Rivian has a manufacturing plant in Normal, Illinois with an annual capacity of 150,000 electric vehicles. The​​ Tesla Inc TSLA rival has revealed plans for a second U.S. plant in Texas where it could spend above $5 billion. 

Electric vehicle market leader Tesla has raced ahead with its popular Model 3 and Model Y vehicles and continues to ramp up capacity with giga factories across the world. The Elon Musk-led company recently hit a $1 trillion market cap after delivering record third quarter deliveries.  

See Also: Why Jim Cramer Would Prefer To Sit 'On The Sidelines' With Rivian And Buy Ford Instead

Price Action: Ford shares closed 3.78% lower at $19.36 a share and GM shares closed 1.11% higher at $59.27 a share on Wednesday. Amazon shares closed 2.63% lower at $3,482.05 a share and Tesla shares closed 4.34% higher at $1,067.95 a share.