Rivian is pricing its IPO, almost valuing the electric vehicle maker.


Electric truck and pickup truck maker Rivian goes public with a stock price of nearly $70 billion in the company; This is a notable figure, emphasizing the belief that the fast-growing electric vehicle market on Wall Street is still a large one. area.

In a securities filing Tuesday, Rivian said it was selling its stake in the offer at $78. In total, this will increase by approximately $12 billion. That fundraising figure would surpass Uber. Raised $8 billion from its IPO in 2019.

Rivian stock will begin trading on the Nasdaq exchange under the ticker symbol RIVN on Wednesday. At close to $70 billion, Rivian’s market cap will approximate that of Ford Motor, which was valued at $80 billion and sold more than four million vehicles worldwide last year.

Tesla’s shares, which lost value after the CEO of leading electric car maker Tesla, Elon Musk, said that he could sell some of his shares, shook the market environment of supply this week.

Rivian has a big appetite for cash. Before this IPO, Raised over $10 billion from investors Including Amazon and Ford, it expects to consume billions of dollars as it tries to increase production of its three vehicles: a luxury pickup truck for off-road drivers; a sports all-terrain vehicle; and a delivery van developed with Amazon, which has a significant stake in Rivian and has ordered 100,000 pickup trucks.

Rivian and many other automakers are betting that consumers are ready to quickly switch to electric vehicles in the next decade. General Motors said it was aiming Phase out production of gasoline-powered vehicles by 2035. On track to sell nearly one million electric vehicles worldwide this year, Tesla has a market cap of $1 trillion, surpassing the combined value of GM, Ford, Toyota Motor, Volkswagen, BMW and many other automakers.

Much now depends on whether Rivian can scale up production to meet customers’ orders. Tesla went through many tough months as it struggled to produce its sedan in large numbers.

At the end of last month, Rivian had delivered just 156 of its pickup trucks, known as the R1T; The SUV plans to start deliveries of the R1S next month. In a financial filing, he said he does not expect to meet 55,400 truck and SUV orders by the end of 2023, underlining that it will take time to produce a significant number of vehicles on production lines.

Like other electric vehicle manufacturers that went public this year, Rivian reports huge losses. In the first six months of this year, Had a net loss of $994 million, almost as much as it lost $1.02 billion in the entirety of 2020. Investors may be willing to tolerate losses for a while. The minibus contract with Amazon should in theory provide a steady stream of income.

And Rivian can also benefit from a well-managed view in the auto industry. chief manager, RJ ScareHe holds a PhD in mechanical engineering from the Massachusetts Institute of Technology and has so far not cited the easily distracted or unnecessary controversy, criticism of Tesla’s Mr. Musk.

Rivian’s pickup and SUV are focused on affluent buyers who love the outdoors. “Keep the world adventurous forever,” says Rivian’s IPO prospectus.

Still, Rivian will face daunting competition, including from established automakers with a lot of experience in mass production. Ford is expected to start producing an electric version of the F-150 pickup truck, which is the best-selling vehicle in the United States, next year. GM is expected to start selling an electric GMC Hummer soon in both truck and SUV versions, and is working on a Chevrolet Silverado electric pickup truck.

If its bankers sell their excess shares to meet strong demand, and some shares issued as employee compensation are included in the calculation, Rivian would be worth around $75 billion at the IPO price.



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