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Amazon-Backed EV-Maker Rivian Aims for IPO This Year

The electric-truck maker mulls the public markets.
(MichaelVi)
(MichaelVi)
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Rivian Automotive, an EV startup with Amazon and Ford as backers, is planning to go public as early as September in a potentially $50 billion IPO, Bloomberg reports.

Why It Matters: Rivian, which has raised more than $8 billion to date, is one of the most prominent challengers to Tesla’s throne. It’s battery-electric pickup and SUV are expected to perform well in the U.S. market.

  • “At a $50 billion valuation, it would likely be one of the biggest IPOs of the year and one of the most noteworthy EV listings since Tesla’s 2010 offering.”

Numbers To Consider:

  1. Rivian was last valued at $27.6 billion after a $2.65 billion funding round in January.
  2. The company has more than 3,600 employees split between Michigan, Illinois and California.
  3. It also has a deal with Amazon to produce 100,000 custom electric delivery vans over the next decade.

Several EV Companies Have Gone Public Recently:

  • In July, Chinese EV startup Li Auto netted $1.26 billion with a U.S. IPO.
  • Xpeng, another chinese company, raised $1.5 billion in an August U.S. listing.
  • Fuel cell-truck upstart Hyzon Motors agreed to merge with Decarbonization Plus Acquisition Corp this month in a deal valued at more than $2 billion.

Looking Ahead: Rivian’s timeline to go public and potential value are both in flux and could change, even possibly slipping to 2022. Production and deliveries of its consumer pickup are expected to start in june, with its SUV coming a month later.

Justin Oh:

I consider Rivian to be Tesla’s most-prominent “new” competitor. It’s been building its product and capacity for a while now and has a sharp suite of investors. From reputation and resources alone, I would bet on the likelihood of its success over that of other startups like Fisker, Lucid, Lordstown, or Nikola.

But make no mistake, they are all miles behind the king, Tesla ($TSLA). Rivian expects its first deliveries to go out in June 2021, with meaningful volumes most likely in 2022. 

  • First, it’s going to take production tweaks and real-world sales to get the product to perfection. 
  • Second, the range specs on their initial deliveries will be chasing the specs Tesla has proven out in the real-world with old models.
  • Finally, Rivian is just starting to build out its charging network and its drivers will most likely have to rely heavily on public networks like ChargePoint.
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