April 2nd, 2024 – General Electric (GE) recently terminated its break up process through which 3 different companies were created (GE Healthcare, GE Aerospace and GE Vernova that came to life at the beginning of 2023). This huge operation was announced in late 2021, after GE saw its dimension increasing hugely thanks to an important diversification strategy carried out before the beginning of the breaking up. The latter was the culmination of a strategy aimed at helping GE facing the consequences of the 2008 global financial crisis that heavily affected GE Capital, the most relevant division of the company. GE began trading as separate entities on Tuesday, with Larry Culp (CEO of GE Aerospace) and Scott Strazik (CEO of GE Vernova) who rang the NYSE opening bell. Analysts currently estimate the total value of the firm led by Culp being more than 100$ billion, a very positive achievement for GE Aerospace that was considered as a cash cow by the parent company for a long period of time. While Vernova will trade under the GEV symbol, GE Aerospace will continue trading under the usual GE symbol.
On Tuesday, Rivian Automotive (RIVN), one of the main US electric vehicles manufacturers with a revenue of 4.43$ billion in 2023, disclosed its vehicle deliveries for Q1 2024, with a final result that was way better than the expectations and also doubled down its full-year production target level. While the number of units expected to be sold in 2024 Q1 was equal to 13 ‘000, Rivian exceeded the forecasted value by 588 units, while the total amount of cars produced was 13980. Unfortunately, this result marks a worsening in comparison with Q4 2023, when deliveries totaled 13972. Although Rivian beat analysts’ expectations about EV deliveries, its stock price dropped by 5.23% by 4:00 PM EDT, while, on Monday, the market trend of the company stock was quite positive (+1.3%).
Author: Piero Foberti