Why Rivian Is Worth More Than Ford, GM & VW, Despite Not Making Any Money

Electric-truck startup Rivian

Rivian just started making deliveries and aims to ship 1,000 trucks this year, but its strong backers and electric future rallied investors.

Rivian’s Strong Backers

Tesla Raj Shares Rivian R1T Electric Truck

Much of Rivian’s value comes from its strong backers. Amazon has invested over a billion dollars in the EV startup and ordered 100,000 electric delivery trucks to help reduce the carbon footprint associated with the massive amount of shipping that the e-commerce giant manages. Ford also heavily funded Rivian with over $800 million, initially planning to use its electric skateboard in some of its own cars. Unfortunately, those plans changed due to the pandemic, but the investment remained. With such powerful allies, it makes sense that investors are feeling bold about Rivian. This has a similar feel to when social media networks blew up at a time when advertising was little to none, such as Instagram selling to Facebook for a billion dollars with no revenue. Rivian is drawing upon high expectations but also a solid foundation, with a working factory and the first mass-produced electric trucks on the market, beating both Tesla and Ford to that milestone.

With over 55,000 preorders for the Rivian R1T pickup and R1S SUV, the company plans to fill those orders, along with 10,000 electric delivery trucks for Amazon, by the end of 2023. While those figures pose no threat to Tesla, it provides a solid foundation for growth and stability. That isn’t as certain with automakers like Ford and VW, which have a split focus and are trying to keep their combustion-powered vehicles selling while making the transition to fully-electric cars with targets pushing into 2035. Nevertheless, the future is clearly favoring electric vehicles. The market recognizes that placing value on the future and eagerly investing in companies with that singular focus, such as Tesla and Rivian.

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