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GM Chair and CEO Mary Barra addresses traders Oct. 6, 2021 on the GM Tech Middle in Warren, Michigan.
Photograph by Steve Fecht for Common Motors
The huge valuations of electrical car start-ups resembling Rivian, which made its public debut Wednesday on the Nasdaq at the next inventory value and market cap than Common Motors, exhibits the legacy automaker is “so undervalued,” GM CEO Mary Barra mentioned Wednesday.
Rivian’s inventory started buying and selling at $106.75 a share, a roughly 37% pop from its IPO value of $78 a share and a market valuation of $91 billion. That compares with GM at $60 a share and a market cap of $86.4 billion.
“What it highlights to me is the massive alternative. Common Motors is so undervalued,” Barra mentioned Wednesday with out particularly naming Rivian throughout The New York Instances DealBook convention. “I see it as large alternative for Common Motors to seize vital extra worth.”
When requested whether or not her rivals’ valuations make sense, Barra mentioned she does not view them that method.
“I have a look at each competitor as anyone that I respect. And that now we have to be higher, be sooner, have autos that customers need to have, clear up the possession equation,” she mentioned. “In order that’s the way in which I have a look at it. I might say if something, it motivates me to work even more durable.”
Rivian is seen as one of many EV start-up frontrunners able to taking up electrical car chief Tesla, as GM and different conventional automakers make investments tens of billions of {dollars} within the rising market phase.
GM was keen on investing in Rivian, however its largest crosstown rival, Ford Motor, ending up investing within the EV start-up as a substitute. Ford, which owns about 12% of start-up, satisfied Rivian CEO RJ Scaringe that Ford can be a greater match than GM, as not too long ago reported by the Wall Road Journal.
GM has introduced plans to take a position $35 billion in electrical and autonomous autos by way of 2025, because it targets outselling Tesla in home EV gross sales by then.
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