Rivian IPO proves Common Motors is undervalued, says GM CEO

GM Chair and CEO Mary Barra speaks to investors at the GM Tech Center in Warren, Michigan on October 6, 2021.

Photo by Steve Fecht for General Motors

The massive reviews from startups for electric vehicles like Rivian that made his public debut on Wednesday on the Nasdaq at a higher share price and market capitalization than General Motors, shows that the old automaker is “so undervalued,” said GM chief Mary Barra on Wednesday.

Rivian stock started trading at $ 106.75 per share, up about 37% year over year IPO price of $ 78 per share and a market valuation of $ 91 billion. This compares to GM at $ 60 per share and a market capitalization of $ 86.4 billion.

“What it sets out to me is the great opportunity. General Motors is so undervalued, “said Barra on Wednesday, without specifically naming Rivian during the New York Times’ DealBook conference.” I see it as a great opportunity for General Motors to achieve significantly more value. “

When asked if her competitors’ reviews made sense, Barra said she didn’t see them that way.

“I see every competitor as someone I respect. And that we have to get better, have to be faster, have to have vehicles that consumers want, that solve the property equation,” she said. “So that’s how I see it. I would say, if anything, it motivates me to work even harder.”

Rivian is recognized as a pioneer in EV startups that can rival the leading electric vehicle Teslaas GM and other traditional automakers invest tens of billions of dollars in the emerging market segment.

GM was interested in investing in Rivian, but its biggest rival, Ford engine, invest in the EV start-up instead. Ford, which owns about 12% of the start-up, convinced Rivian CEO RJ Scaringe that Ford would be a better fit than GM, as reported recently from the Wall Street Journal.

GM has announced plans to invest $ 35 billion in electric and autonomous vehicles by 2025, since there is Goals exceed Tesla until then in domestic EV sales.