Weeks after unveiling the industry’s first mass-production electric truck, American electric vehicle (“EV”) maker Rivian is poised for an initial public offering (“IPO”) on the NASDAQ stock exchange that could see it achieve a valuation of $53 billion. Documents filed with the Securities and Exchange Commission (“SEC”) in New York indicate that Rivian plans on issuing 135 million shares at $57 to $62 to raise $8.4 billion in capital. With a $53 billion valuation, Rivian would be more valuable than carmakers such as Kia and Nissan.
The California-based company has already had plenty of investor interest, attracting major players in the business world as initial backers. By July 2021, Rivian said that it had raised a total of $10 billion, with Amazon, Ford and T. Rowe Price investing significant funds. According to Rivian, Amazon has invested $1.345 billion for a 22% stake. Furthermore, the e-commerce giant recently bought convertible notes worth $490 million that will, under certain pricing conditions, convert to Class A shares after the initial public offering. Ford’s investment in Rivian is worth $1.24 billion while mutual fund company T. Rowe Price has invested $2.6 billion.
Like most electric vehicle startups, Rivian still hasn’t made a profit. The first half of the year saw the company post a loss of almost $1 billion, and since the start of 2020, Rivian has lost more than $2 billion. This is partly because the EV maker is still tooling and expanding its factory in Illinois and still hasn’t begun sales. The company expects to spend around $8 billion on acquiring equipment and building facilities until the end of 2023.
Once the Illinois facility is ready, Rivian will use it to develop its first electric vehicle models, the R1S SUV with 300 miles of range and the R1T electric pick-up truck with 314 miles of range. There are already 50,000 preorders for Rivian EVs, the SEC filing indicated, and Rivian has tentative plans to deliver 1,000 units of the R1T by the end of the year.
Rivian is also finishing development on an electric delivery van that will be central to Amazon’s plans to reduce its carbon footprint and achieve carbon neutrality by 2040. Amazon has already placed an order of 100,000 bespoke electric vans, with the first deliveries beginning in February. Rivian will deliver the rest of the electric vans by 2025, and both companies hope that by the end of 2022, there will be 10,000 units of the electric vans on the road. The vans have a range of 150 miles and will primarily be used in urban areas that neighbor Amazon delivery hubs.
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