{"id":1442,"date":"2021-11-10T09:49:59","date_gmt":"2021-11-10T08:49:59","guid":{"rendered":"https:\/\/a2kadvisory.com\/?p=1442"},"modified":"2021-11-10T10:00:12","modified_gmt":"2021-11-10T09:00:12","slug":"rivian-prices-ipo-at-78-a-share-valuing-electric-vehicle-company-at-66-5-billion","status":"publish","type":"post","link":"https:\/\/a2kadvisory.com\/fr\/2021\/11\/10\/rivian-prices-ipo-at-78-a-share-valuing-electric-vehicle-company-at-66-5-billion\/","title":{"rendered":"Rivian prices IPO at $78 a share, valuing electric vehicle company at $66.5 billion"},"content":{"rendered":"
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R.J. Scaringe, Rivian\u2019s 35-year-old CEO, introduces his company\u2019s R1T all-electric pickup and all-electric R1S SUV at Los Angeles Auto Show in Los Angeles, California, November 27, 2018.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Rivian Automotive, the electric vehicle maker backed by\u00a0Amazon<\/a>\u00a0and\u00a0Ford<\/a>, priced its IPO on Tuesday at\u00a0$78 a share<\/a>. The deal values Rivian at $66.5 billion.<\/p>\n

Should underwriters exercise their full purchase option, the company will have a market cap of over $68 billion. The stock will trade on the Nasdaq under ticker symbol RIVN.<\/p>\n

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Rivian said it expects the IPO to bring in $11.9 billion.<\/span><\/div>\n<\/div>\n

Last week, Rivian increased the expected price range to between $72 and $74 from a previous range of $57 to $62. At its $78 offer price, Rivian is already worth almost as much as\u00a0Ford<\/a>\u00a0($79 billion) and\u00a0General Motors<\/a>\u00a0($85 billion). That\u2019s all before the company has even started generating real revenue.<\/p>\n

Rivian said in its\u00a0prospectus<\/a>\u00a0that it will lose up to $1.28 billion in the third quarter, while revenue will range from zero to $1 million. It\u2019s the latest EV company to attract hefty investor capital at a stratospheric price without yet proving that it has a sustainable business model.<\/p>\n

Lucid Motors<\/a>\u00a0is worth $72.5 billion even though the company\u00a0just began production<\/a>\u00a0of its first cars.\u00a0Nikola\u2019s<\/a>\u00a0market cap\u00a0was higher<\/a>\u00a0than Ford\u2019s at one point last year, despite the company having no revenue. It\u2019s now worth less than $6 billion, after a\u00a0short-selling firm accused the company of making \u201can Ocean of Lies.\u201d<\/p>\n

Investors are continuously trying to hop on the next\u00a0Tesla<\/a>. Elon Musk\u2019s company\u00a0topped $1 trillion<\/a>\u00a0in market value last month and is now the fifth most-valuable U.S. company.<\/p>\n

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While Rivian is still effectively pre-revenue, the company said in its prospectus that it has a backlog of 55,400 pre-orders for its R1T and R1S electric vehicles. The R1T is a truck that starts at $67,500, and the R1S is an SUV starting at $70,000, according to Rivian\u2019s <\/span>website<\/a>.<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The company said it expects to fill those orders by the end of 2023. Additionally, Amazon has ordered 100,000 vehicles to be delivered by Rivian by 2030, and the companies plan to have 10,000 new Rivian-Amazon delivery vehicles on the road as early as next year. Amazon is pushing its fleet to renewable energy sources, and said in 2019 that it was\u00a0purchasing thousands of vehicles<\/a>\u00a0from Rivian.<\/p>\n

Amazon, which invested more than $1.3 billion into Rivian, owned 22.4% of the company\u2019s Class A shares prior to the IPO. That stake is worth about $12.5 billion at the offer price.\u00a0Ford<\/a>\u00a0owned 14.4% of Class A stock before the offering, a stake now valued at $8 billion.<\/p>\n

Rivian says its factory in Illinois has the capacity to produce up to 150,000 vehicles per year. The company had over 6,000 employees as of the end of June.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Source : cnbc.com<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

Rivian Automotive, the electric vehicle maker backed by Amazon and Ford, priced its IPO on Tuesday at $78 a share. The deal values Rivian at $66.5 billion.<\/p>","protected":false},"author":1,"featured_media":1443,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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Rivian prices IPO at $78 a share, valuing electric vehicle company at $66.5 billion<\/a><\/blockquote>