Rivian details $1 billion loss, Amazon deal in IPO file

(Bloomberg) — Rivian Automotive Inc. has revealed. Amazon.com Inc., a manufacturer of electric trucks powered by Amazon.com Inc. , reported a net loss of about $1 billion in the first half of the year in its IPO papers.

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The Irvine, California-based startup, in a statement Friday with the US Securities and Exchange Commission, listed the size of the offering as $100 million, a placeholder that will change when the terms of the stock sale are set.

Rivian was seeking to be worth about $80 billion on a listing, Bloomberg News reported in August when the company announced it had secretly filed for an IPO.

The company’s IPO plans come as electric car makers expand, seeking to capture a larger slice of the growing market. With $10.5 billion raised from backers including Amazon and Ford Motor Co. , a well-established plant in Illinois and with thousands of holdouts for its R1T truck and R1S SUV, Rivian is among the most dangerous competitors lining up to take on the electric car of Tesla.

The filing revealed new details about Rivian’s agreement with Amazon, confirming how the startup has tied its future to one of its biggest benefactors. The e-commerce giant will have exclusive rights to Rivian’s delivery vehicles for four years after receiving the first, and will have the right to first refuse to purchase the trucks for two years after that. Amazon has ordered 100,000 last-mile trucks by 2030, and the first 10,000 are due to be delivered this year.

But the filing shows that Amazon’s logistics unit has no obligation to purchase any Rivian electric delivery vehicles — and that it can still work with any other potential vehicle partners.

“While the EDV agreement states that we will be compensated for some development costs, it does not include any minimum purchase requirements or restrict logistics from developing vehicles or cooperating with or procuring similar vehicles from third parties,” she said.

Rivian also revealed the number of pre-ordered SUVs and trucks. Prospective customers deposited a refundable $1,000 towards non-binding rights to purchase 48,390 R1T and R1S models.

$3.7 billion war fund

Rivian incurred a net loss of $994 million in the first six months of 2021, compared to a deficit of $377 million the previous year, according to the filing. The company generates negligible revenue from initial sales of its R1T truck, commercial van and vehicles, and generates no revenue from sales of other products. It had about $3.7 billion in cash and cash equivalents as of June 30 to fund its growth.

The filing showed that the company’s other investors were T. Rowe Price Group Inc. and Global Oryx Co. and Manheim Investments.

“Rivian is set up to create products and services that help our planet transition to carbon-neutral energy and transportation,” wrote founder and CEO Robert Scaring in a letter to potential investors. “I hope you’ll join us on our journey to help lead the future of transportation.”

The startup revealed that, as of this week, it has operated six service centers in four states, including California, Illinois and New York, as well as a 24/7 service support center in Michigan and 11 mobile service vehicles. Rivian has a network of 169 dedicated charging stations across the country, 24 of which are called express charging locations.

The show is led by Morgan Stanley and Goldman Sachs Group Inc. and JPMorgan Chase & Co and more than 20 banks are listed on the cover page of the prospectus. The company plans to trade its shares on the Nasdaq Stock Exchange under the symbol RIVN.

Rivian employs approximately 8000 people globally. It is the main plant in Normal, Illinois, and is a former Mitsubishi Motors plant where production began on the company’s first consumer model.

Separately, Rivian said Friday that it has created a charity called Forever to tackle climate change and has committed to investing 1% of its stock in the nonprofit.

(Updates with additional details from the filing of the fifth paragraph.)

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