Rivian Automotive, which is backed by Amazon, is concentrating on a valuation of greater than $53 billion for its U.S. debut, which may make the electric vehicle producer as precious as rival Honda Motor.
The Wall Road Journal was reporting a valuation of simply over $60 billion.
Since final 12 months, corporations within the EV house have emerged as among the hottest investments, particularly amongst SPAC traders on the hunt for the subsequent Tesla.
Whereas Rivian has but to promote any important quantity of its electrical vans or trucks, a valuation over $50 billion would make it price about $15 billion lower than its backer Ford Motor Co, which makes about 4 million autos a 12 months.
It may doubtless be valued larger than Ferrari, however can be smaller than General Motors.
Founded in 2009 as Mainstream Motors by R. J. Scaringe, the corporate modified to Rivian in 2011, a reputation that’s derived from “Indian River” in Florida, a spot Scaringe frequented in a rowboat as a youth.
The startup has been investing closely to ramp up manufacturing, together with for its upscale all-electric R1T pickup truck, which was launched in September, beating out competitors from established rivals corresponding to Tesla, Normal Motors and Ford.
Rivian had about 48,390 pre-orders for its pickup vans and R1S SUVs in the US and Canada as of September.
It’s at present pursuing a two-track technique: building electric delivery vans for Amazon and growing an electrical pickup and SUV model aimed toward prosperous people.
Amazon, which disclosed a 20% stake in Rivian on the finish of October, has ordered 100,000 of its electrical supply vans as a part of the e-commerce big’s effort to chop carbon footprint.
Ford holds a greater than 5% share within the EV startup, in line with a submitting with the U.S. Securities and Alternate Fee.
Rivian, which confidentially filed paperwork for an preliminary public providing in August, will, nonetheless, face powerful competitors from automakers in each the buyer and commercial van markets.
Ford stated final week it has greater than 160,000 orders for the Ford F-150 Lightning electric pickup truck and that an electric version of its Transit commercial van is “utterly bought out.”
Normal Motors is gearing up manufacturing of electrical supply vans, SUVs and pickup vans.
Final month, Rivian disclosed practically $1 billion in losses for the primary half of this 12 months and stated it could promote 135 million shares at a worth vary of between $57 and $62 every.
On the high finish of the vary, the IPO will fetch greater than $8 billion.
Reuters reported https://www.reuters.com/enterprise/autos-transportation/rivian-aims-raise-much-8-bln-ipo-sources-2021-09-15 in September that Rivian may search a valuation of practically $80 billion, elevating as much as $8 billion in its U.S. itemizing.
Morgan Stanley, Goldman Sachs and J.P. Morgan are the lead underwriters. Rivian will record on the Nasdaq beneath the image “RIVN.”
