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Amazon disclosure reveals 20% stake in Rivian as IPO approaches owns a 20% stake in electric-vehicle maker Rivian, the startup with which it has positioned an order for 100,000 battery-powered supply vans, the e-commerce big disclosed Friday in a securities submitting.

As of Sept. 30, Amazon held fairness investments “together with most well-liked inventory of Rivian Automotive, Inc. representing an roughly 20% possession curiosity,” which can be valued on the steadiness sheet at $3.8 billion — up from $2.7 billion on the finish of 2020, Amazon mentioned within the submitting.

Amazon shares pared losses of greater than 5% after the disclosure of its funding in Rivian to commerce down 2.8% to $3,347.27 as of at 12:41 p.m. in New York. The inventory has gained simply 2.8% in 2021, trailing the S&P 500 Index considerably.

Rivian is seen as a real contender within the EV market and potential rival to incumbent Tesla. The startup’s raised greater than $10.5 billion from buyers thus far and is searching for a valuation of $80 billion in an IPO later this yr, Bloomberg reported in August. 

Rivian mentioned in a submitting final week that it might put up a quarterly lack of as a lot as $1.28 billion because it ramps up manufacturing on its debut EV, a battery-electric pickup known as R1T. The Irvine, California-based firm had disclosed in a separate submitting earlier this yr that Amazon had invested greater than $1.3 billion within the automaker and held virtually 150 million shares of most well-liked inventory.

Amazon’s voting energy as a proportion was redacted. A consultant for Rivian declined to remark.

Ties That Bind

Peter Krawiec, a senior vice chairman of worldwide company and enterprise growth at Amazon, is on Rivian’s board. The Seattle-based firm’s order for electrical supply vans extends by way of the top of the last decade, with the primary 10,000 models due earlier than the top of subsequent yr. The order is a cornerstone of Amazon’s formidable plan to curb its rising greenhouse gasoline emissions.

Restricted manufacturing of Rivian’s debut pickup began in August and buyer deliveries started final month. The startup has encountered quite a few delays it has blamed on Covid-induced supply-chain challenges. Rivian has pushed again manufacturing of its second client mannequin, a sports-utility car known as the R1S. 

It’s additionally prioritizing manpower and assets for manufacturing of Amazon’s van over its retail consumer-focused fashions, Bloomberg reported final month.

All three autos — the truck, van and SUV — can be constructed at Rivian’s plant in Regular, Illinois. The corporate is in talks to speculate $5 billion for a second manufacturing facility in Fort Value, Texas, Bloomberg reported in August. It’s additionally assessing choices for a plant in Europe that might additionally construct Amazon vans, Bloomberg reported in January.

Different buyers within the EV maker embody Ford, which has invested greater than $820 million in Rivian and holds a stake higher than 5%. Ford just lately vacated its Rivian board seat.

For Amazon, the wager on Rivian represents one in every of its largest investments, in greenback phrases, in one other firm. The e-retailer’s company growth group has put money into startups engaged on voice know-how associated to the Alexa digital assistant. Different investments function firms which might be its suppliers or companions. The roster consists of investments — or warrants to purchase inventory in — meals distributor SpartanNash and air cargo operator Air Transport Providers Group Inc.

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