Rivian IPO proves Normal Motors is undervalued, says GM CEO Mary Barra

GM Chair and CEO Mary Barra addresses buyers Oct. 6, 2021 on the GM Tech Middle in Warren, Michigan.

Picture by Steve Fecht for Normal Motors

The large valuations of electrical automobile start-ups similar to Rivian, which is making its public debut Wednesday on the Nasdaq at the next inventory value and market cap than Normal Motors, exhibits the legacy automaker is “so undervalued,” GM CEO Mary Barra mentioned Wednesday.

Rivian’s inventory is indicated to open at $125 a share, a 60% pop from its IPO value of $78 a share and implying a valuation of as a lot as $106.6 billion. That compares with GM at $60 a share and a market cap of $86.four billion.

“What it highlights to me is the large alternative. Normal Motors is so undervalued,” Barra mentioned Wednesday with out particularly naming Rivian throughout The New York Instances DealBook convention. “I see it as enormous alternative for Normal Motors to seize important extra worth.”

When requested whether or not her rivals’ valuations make sense, Barra mentioned she does not view them that means.

“I take a look at each competitor as any person that I respect. And that we now have to be higher, be quicker, have automobiles that customers need to have, resolve the possession equation,” she mentioned. “In order that’s the best way I take a look at it. I’d say if something, it motivates me to work even tougher.”

Rivian is considered as one of many EV start-up frontrunners able to taking over electrical automobile chief Tesla, as GM and different conventional automakers make investments tens of billions of {dollars} within the rising market phase.

GM was considering 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 speculate $35 billion in electrical and autonomous automobiles via 2025, because it targets outselling Tesla in home EV gross sales by then.

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