Rivian, which makes electric vehicle (EV) versions of trucks and SUVs beloved of the male inhabitants of the US deep south, has been on an exciting journey since listing earlier this month.
From the offer price of US$78 a share, the stock hit US$170 before settling down to around US$110 in early trade on Wednesday.
It has also made bumper sums for early backers, with billionaire Daniel Loeb’s hedge fund among the winners, banking a tidy US$300mln profit on its investment on Tuesday.
Valued at US$102bn, Rivian has grown into a significant business, in terms of market valuation.
But compared with Tesla – market capitalisation US$1 trillion – it’s still a toddler.
Here we look at the next wave of EV companies off the production line.
Okay, so who are they?
There are some 300 EV makers in China, according to state-owned Xinhua, due to Beijing incentivising the sector’s development via the offering of tax breaks to any companies that entered the market after 2010.
The largest Chinese EV maker is BYD Auto which has a market value of approximately US$130bn, having sold over 180,000 vehicles in the third quarter this annum.
Perhaps the most well-known of all Chinese EV automakers is NIO Inc (NYSE:NIO), which sold over 66,000 EVs in the nine months ended 30 September.
Its market value sits at US$66bn, and its investors include FTSE 100 tech investor Scottish Mortgage Investment Trust.
NIO is some way larger than the next Chinese automaker Kandi, which has a market cap of US$306mln.
Away from China, Tesla’s largest rivals in terms of market value are Toyota Motor (NYSE:TM) Corp at US$229bn, Volkswagen AG at US$128bn, Daimler (ETR:DAI) AG at US$106bn, General Motors (GM) at US$93bn, and Ford Motor Co at US$80bn.
Towards the end of last month, Tesla’s market capitalisation surpassed the combined market value of these five competitors – all of which sell many more cars in total and all of which are producing electric vehicles.
But who’s the EV daddy?
In terms of EV market share, it’s Tesla.
The California-based company’s two most popular EVs – the Model Y and Model 3 – have over half of the entire market share with 32.9% and 22.6%, respectively.
In total, Tesla’s four EVs had 64.6% of the market share during the second quarter of 2021 with all four in the top eight EVs for market share.
So what’s next for EVs?
Tesla has said it will begin production of its cybertruck next year, whilst it will also start making its electric semi-truck next year.
GM announced in April it will build a Chevrolet Silverado EV with a 400-mile range but is yet to give a release date.
In May, Ford announced it will launch its ‘Ford F-150 Lightning’ EV truck in 2022, which will have a range of 300 miles.
Both these vehicles intend to have a similar range to Tesla’s cybertruck which will have one of 250+ miles, said Investopedia.
Let’s look into our crystal ball
UBS analysts anticipate Volkswagen will give Musk’s Tesla the biggest run for its money.
The bank expects German automaker to deliver roughly the same number of EVs as Tesla next year (approximately 1.2mln).
UBS went on to add that Volkswagen is ahead of Tesla in terms of scalability of its EV platform, but this won’t accelerate Volkswagen’s valuation into the vicinity of Tesla’s.