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EV startups struggle to catch Tesla’s hype train
Cars.com CEO Alex Vetter: EV market yet to take off with consumers
Cars.com CEO Alex Vetter discusses how rising interest rates are impacting car loan demand and the electric vehicle market on ‘The Claman Countdown.’
Electric-vehicle startups are as far from the world of blue-chip stocks as investors can go: The more optimistic their valuations, the better their chances of growing into them.
Wednesday marks a year since peak EV startup fever on the stock market when Rivian finished the day with a market value of $155 billion a few days after its initial public offering. A year of production and supply-chain challenges, its valuation is hovering a bit above $30 billion.
But Rivian is actually in much better shape than its less well-funded peers. Car manufacturing, particularly in the startup stages, is a competition for capital more than one for customers. Rivian won that game with its fortunately timed IPO, which was upsized following a wild rally in Tesla shares in October 2021. The company ended up raising almost $12 billion, which means it can now afford to burn through more than $1.5 billion a quarter in a push to ramp up production.