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

Photo by Steve Fecht for General Motors

The huge valuations of electrical car start-ups similar to Rivian, which made its public debut Wednesday on the Nasdaq at the next inventory worth and market cap than General Motors, reveals 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 worth 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. General Motors is so undervalued,” Barra mentioned Wednesday with out particularly naming Rivian throughout The New York Times DealBook convention. “I see it as big alternative for General Motors to seize important extra worth.”

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

“I take a look at each competitor as someone that I respect. And that we’ve to be higher, be quicker, have automobiles that customers wish to have, resolve the possession equation,” she mentioned. “So that is the best way I take a look at it. I might say if something, it motivates me to work even more durable.”

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

GM was taken with 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 lately reported by the Wall Street Journal.

GM has introduced plans to take a position $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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