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Rivian Automotive, an American electric car company, listed on Nasdaq at $78 a share on Nov. 10, up 53% on its first day. In intraday trading, the market capitalization of Rivian exceeded US $100 billion and raised more than US $12 billion. As of the 11th close, Rivian was trading at US $122.99 per share, up 22.10%, with a market capitalization of US $106 billion.

Commenting on Rivian's market capitalization of more than $100 billion, Tesla CEO Musk commented on the social platform: "I hope Rivian can achieve mass production and positive cash flow. This is the real test for the company." Tesla is the only American car company that has achieved mass production and positive cash flow in the past 100 years, whether it's fuel or electric cars. " It is worth mentioning that at the end of last month, Musk commented on the report of "stagnant production of Rivian" that Rivian opened a second new production line before the first car production line became operational, which would spread resources and magnify the probability of failure.

It is understood that Rivian, founded in 2009, is an electric car manufacturer supported by Amazon and Ford, headquartered in Irvine, California. The company's planned products include electric SUV, pickup trucks and trucks, focusing on electric pickup cars Rivian R1T and electric SUV Rivian R1SRivian. At present, Rivian has completed eight rounds of financing, including Amazon, Ford Motor Company, BlackRock and other well-known companies, of which Amazon is the largest shareholder of Rivian, with a 20% stake.

Currently, Rivian, which has only one plant in Illinois with a planned production capacity of about 150000 units, says it is far from meeting current order demand. As early as August this year, Rivian chose Bristol as its first overseas production line, with an estimated investment of 1 billion pounds. Rivian focuses on the domestic pickup market, which is in high demand in the United States, and in September this year, it launched its first electric pickup R1T.

With regard to the mass production of Rivian, Rivian has said that its main plant will produce 150000 vehicles a year by the end of 2023. Rivian CEO R.J. Scaringe also said the company plans to build a capacity of 1 million vehicles a year by 2030.

In terms of market capitalization, Rivian has surpassed Ford and GM in market capitalization, but according to its prospectus, Rivian has been losing money in recent years, with a net loss of $426 million in 2019, a net loss of $1.02 billion in 2020 and a net loss of $994 million from January to June 2021. In addition, the company expects a loss of $1.28 billion in the third quarter of this year, while revenue is between $0 and $1 million.

In fact, whether in China or the United States, after new energy vehicles have become the future development trend, a number of new car-making brands have emerged, especially after Tesla has become the highest market capitalization car company in the world. every car brand wants to be the next "Tesla". However, as Mr Musk said, achieving mass production and positive cash flow is the real test. In other words, although Rivian was spoiled by the capital market as soon as it was listed, like many new car companies, mass production and delivery is only the first step, and there are still many places to burn money in the future. When can we achieve positive cash flow, maybe we can really get out of the "ward".

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