The long-speculated initial public offering by Amazon, Inc. AMZN-backed EV startup Rivian is a go.
What Happened: Rivian confirmed Friday it has confidentially filed for an IPO and said the offering will likely take place after the SEC completes its review process, subject to market and other conditions.
Earlier, a Bloomberg report said Rivian expects to list its shares around Thanksgiving and is aiming for a valuation of around $80 billion.
If the IPO goes according to plan, Rivian could well be on its way to become the sixth most-valued automaker after Tesla, Inc. TSLA, Toyota Motor Corporation TM, Volkswagen AG VWAGY, BYD Company Limited BYDDF and Daimler AG DDAIF.
The proposed valuation is higher than that of legacy automakers such as General Motors Corp GM, Ford Motor Co. F and Stellantis N.V. STLA as well as the Chinese EV startup Nio, Inc. NIO.
Incidentally, Ford is among the early investors in Rivian.
Related Link: Tesla Cybertruck Vs. Ford F-150 Lightning Vs. Lordstown Endurance: Vs. Rivian R1T: How They Stack Up
The rich valuation has raised eyebrows, given Rivian hasn't yet commercially sold any vehicle.
80 billion?? They want a valuation higher than Ford and GM, with no cars on the road? What a joke
— Gielompik (@Gielompik2) August 27, 2021
Rivian, founded in 2019, has so far raised $10.5 billion in 14 private funding rounds, according to Tracxn.com.
Most recently, in late July, Rivian raised $2.5 billion in a Series E funding round.
Why It's Important: Rivian is developing two EVs: the R1T pickup truck named R1T and R1S SUV.The company is planning to deliver its R1T pickup truck in September, potentially becoming the first to market.
Lordstown Motors Corp. RIDE is planning to begin limited production of a rival product, the Endurance, next month. Tesla, Inc. TSLA's Cybertruck and Ford's electric F-150 are not expected until next year.
Rivian, which has a manufacturing plant in Normal, Illinois, is looking to set up a second plant, likely in Texas.
Related Link: Electric Pickup Truck Maker Lordstown Motors Taps Former Icahn Executive As CEO
Photo: the Rivian R1T. Courtesy of the company.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
