Electric vehicles sales still account for a small portion of overall vehicle sales globally, but are heading for the moon. Globally, electric sales more than doubled in September from a year earlier, accounting for 9% of total vehicles sold.
Traditional auto makers and startups are pouring investment into electric vehicles, spurred by tougher emissions standards globally and the soaring valuation of Tesla, which recently became the sixth trillion dollar company, hit another high yesterday and is up more than 50% this past month.
Amazon-backed, Rivian, an electric-vehicle startup is IPO'ing next week at an expected $60 billion valuation. The figure is eye-popping especially as Rivian has only recently started producing any revenue and is more of a cash burning machine than a car company.
From the start of 2020 through this June, Rivian posted an operating loss of roughly $2 billion and lost approx. $750 million last quarter.
A $60 billion valuation would make Rivian more valuable than Honda (~$53 billion valuation) and in a league with Ford ($72 billion).
Short Squeez Takeaway: With climate change getting worse by the day, it is no surprise that EVs are soaring in popularity. A lot of credit also goes to Elon Musk who has made EV cars sexy with all he has done with Tesla, and now investors (especially ESG) are drinking the sustainable Kool-Aid.