Shares of newly public electric vehicle (EV) start-up Rivian Automotive (NASDAQ:RIVN) continued to soar Monday to start its first full week of trading after its initial public offering last Wednesday. As of 11:25 a.m. EST today, Rivian shares were up another 11.5%, bringing their gains to over 40% since its debut.
In addition to continued excitement over the company's plans to supply Amazon (NASDAQ:AMZN) with 100,000 electric delivery trucks, today's move might also be driven by news that the company is already looking into expanding its manufacturing footprint with a new plant in Georgia.
Rivian priced its IPO of 153 million shares at $78 per share last week, and the stock immediately soared once trading began. Some of the confidence comes from a large order the company already has on its books from Amazon, which was an early investor in the EV maker, leading a $700 million investment round in Rivian in 2019. Amazon is using the investment, along with its order of 100,000 delivery vans, to make good on part of the Climate Pledge agreement it co-founded. The agreement commits to achieving net-zero carbon emissions by 2040, 10 years earlier than the Paris Accord's plan.
But today, investors could be additionally charged up about a report that Rivian is in late-stage talks to build a new vehicle and battery factory near Atlanta, according to The Atlanta Journal-Constitution.
Rivian hasn't commented on the report, but a new plant would add to the current single factory it has in Illinois. With today's surge, it is now valued at a market capitalization of more than $125 billion. That's about 60% higher than that of Ford (NYSE:F), another one of its early investors.
Rivian and its stock have plenty of potential, but the ride higher might not continue as smoothly as it has started. To diversify a portfolio, investors may also want to look at other EV names that aren't flying as high right now.