Amazon-backed EV startup Rivian launches for IPO

Rivian Cars It will go public on Wednesday, in what is expected to be one of the biggest initial public offerings of the year.

It is noteworthy that the electric car maker’s share will open at $115 per share, which means a valuation of up to $98 billion and 47% of the initial public offering price of $78 per share.

Tuesday, Rivian He priced its shares at $78, above the expected range, to raise about $11.9 billion. This stock price gives Rivian a valuation of $66.5 billion, making it slightly less valuable than traditional auto giants like GM And stronghold.

The stock will be traded on the NASDAQ Stock Exchange under the symbol RIVN.

Rivian, who is supported by Amazon and Ford, has generated significant interest from investors looking to take advantage of the rapidly growing electric vehicle market.

Amazon It has a 20% stake in Rivian. It invested more than $1.3 billion in the young automaker prior to its IPO. stronghold It owns 12% of Rivian’s stock, while Cox Automotive owns more than 5%.

The Rivian electric truck is displayed near the Nasdaq MarketSite building in Times Square on November 10, 2021 in New York City.

Michael M. Santiago | Getty Images

While Ford executives have described their relationship with Rivian as a strategic investment, the company’s Lincoln division had previously planned to build electric vehicles with the startup. These plans were abandoned during the pandemic.

Amazon, which is converting its fleet to vehicles powered by renewable energy, revealed in 2019 that it is Buy thousands of vehicles from Rivian. Recent filings show that Amazon has held some exclusive rights to Rivian’s electric battery delivery vehicles for a minimum of four years, with first refusal thereafter.

Amazon has ordered 100,000 Rivian vehicles to be delivered by 2030. The companies plan to have 10,000 new Rivian-Amazon delivery vehicles on the road early next year.

Besides the works of the fleet, Rivian won TeslaAnd GM And stronghold to market with an all-electric pickup truck, the R1T. It plans to launch a seven-passenger battery-powered SUV, the R1S, in December, according to its October publication.

Rivian CEO RJ Scaringe, Ph.D. From MIT’s Sloan Automotive Laboratory, he founded Rivian in 2009. The company is headquartered in Irvine, California, and has a vehicle assembly plant in Normal, Illinois.

The company says its plant in Illinois has the capacity to produce up to 150,000 vehicles annually. About 65,000 of those should be R1T trucks and SUVs, and about 85,000 should be the company’s RCV commercial delivery trucks, Rivian said in the filings.

But Rivian is still relatively cocky, and hasn’t started to generate real revenue. Rivian said in bulletin It will lose up to $1.28 billion in the third quarter, while revenue will range from zero to $1 million.

Nor has it produced its electric cars in very large quantities yet. It’s not clear how quickly it could ramp up production, especially amid global chip shortages and port restrictions that have plagued automakers this year.

Rivian said in an edit to its S-1 profile that it has a pre-order backlog of 55,400 R1T and R1S vehicles from North American customers and plans to deliver them by the end of 2023.

New legislation awaiting President Joe Biden’s signature will provide $7.5 billion in federal grants to build a nationwide network of electric vehicle charging stations, and Rivian could benefit. Scaringe emphasized that the Rivian vehicles are ideal for people with a sense of adventure and a love of the outdoors. As such, the company places charging stations in remote destinations, such as state or national parks.

Rivian’s team counted 6,274 employees as of the end of June.

One of its former executives She filed a lawsuit against Rivian recently He accuses the company of having a “toxic bro culture”, of wrongly ending its business there, and thus of costing it “millions of dollars in unearned equity on the eve of the company’s initial public offering.”

In the lawsuit, Laura Schwab – who previously led Aston Martin’s US operations – claimed the company dismissed concerns it raised about Rivian’s business, including its “ability to deliver on its promises to investors”.

Watch: Electric vehicle maker Rivian priced its IPO above its expected pre-IPO range

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