Why Rivian, Ford, and General Motors Jumped Today
Electric vehicle (EV) makers are working hard to challenge Tesla's leading market share, and the stocks of three popular names jumped today. It wasn't just the large legacy carmakers Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) that have investors buying, but also start-up Rivian Automotive (NASDAQ: RIVN). All three stocks were rising sharply today. As of 3:53 p.m. ET, these shares were higher as follows:
The moves came on a generally positive market day, but Ford and General Motors (GM) in particular made moves to further directly challenge Tesla's hold on the EV consumer. For its part, Rivian shares bounced off all-time lows as investors may have reconsidered what was initially thought to be bad news.
Rivian's enterprise value recently dipped to just about zero, meaning the company's cash on hand was nearly equivalent to its market capitalization and debt combined. That valuation should be taken in context, however, as the $12 billion in cash and equivalents the company held at the end of the fourth quarter isn't quite as big a cushion as it seems. The company already has announced it plans to raise up to another $1.5 billion to support its growth plans as it continues to lose money on its sales. Investors had also sold the stock recently as some questions arose about its partnership with Amazon. But some of those questions have been clarified, and that has helped give the stock a near-term bottom.
Source Fool.com
