TECHNOLOGY

Electric truck maker Rivian, backed by Amazon, goes public

Nov 10, 2021, 8:37 AM
FILE: Interior of vehicle at Rivian Unveils First-Ever Electric Adventure Vehicle Before Its Offici...
FILE: Interior of vehicle at Rivian Unveils First-Ever Electric Adventure Vehicle Before Its Official Reveal At The LA Auto Show at Griffith Observatory on Nov. 26, 2018 in Los Angeles, California. (Photo by Phillip Faraone/Getty Images for Rivian)
(Photo by Phillip Faraone/Getty Images for Rivian)

SILVER SPRING, Md. (AP) — Shares in Rivian Automotive are set to trade publicly Wednesday, and the world should get a better idea of just how excited investors are about the electric vehicle market.

Rivian, the EV startup backed by Amazon and Ford, hopes to raise about $12 billion with the sale of 153 million shares, which would top the $8 billion Uber raised in its IPO in 2019. Rivian said it will use the money to ramp up production of its trucks, vans and SUVs. It’s the latest in what’s becoming a long line of companies trying to carve out some of Tesla’s dominant market share.

With shares priced at $78 and about 850 million shares outstanding after the offering, Rivian would have a market value of $66.5 billion. That compares with Honda’s $53 billion and Ford’s $80 billion.

Automakers big and small, new and old, are chasing Tesla, which has largely dominated the electric vehicle market for years, amassing a market value of more than $1 trillion along the way. So far this year, Tesla has sold around 627,300 vehicles.

Craig Irwin, an analyst who covers electric vehicle and EV charging companies for Roth Capital, says that even with more companies entering the EV market, there is still plenty of room for newcomers.

“EVs are inevitable, and it’s a good thing for the markets to have another credible EV competitor come public,” Roth said. “Rivian’s IPO marks a point of incremental maturation for the industry and shows that billions in capital is available for credible players.”

Rivian has a contract with Amazon to build 100,000 electric delivery vans at its factory, a former Mitsubishi plant in Normal, Illinois. Amazon.com Inc. owns about 20% of Rivian before accounting for the public offering.

Ford Motor Co. invested a half-billion dollars into Rivian in 2019 and said the companies would work jointly to develop electric vehicles. The Detroit automaker has about a 13% stake in Rivian leading up to the public offering.

As of Oct. 31, Rivian had about 55,400 vehicle preorders in the U.S. and Canada. Those orders are placed with a $1,000 deposit that can be canceled and refunded.

Rivian rolled out its first vehicle, the R1T electric truck in September and will launch its electric SUV, the R1S, in December. Prices for the truck start at $67,500, while the SUV base package starts at $75,500 and gets even steeper with all the add-ons.

Options for the vehicles include a $10,000 battery upgrade that will extend the driving range from 314 miles (505 kilometers) to more than 400 miles (643 kilometers). A three-person roof-mounted tent adds $2,650 to the bill and an off-road recovery kit will cost an additional $600.

The research firm LMC Automotive says in 2020, EVs made up a little more than 3% of the global auto market and less than 2% of the U.S. auto market. The group projects those numbers to shoot up to about 15% and 12%, respectively, by 2025.

Rivian, which was founded in 2009, says it lost $426 million in 2019 and $1 billion last year. It reported losing nearly another billion dollars in the first six months of this year. Tesla, which went public in 2010, recorded its first annual profit last year.

KSL 5 TV Live

Top Stories

Technology

On August 9, Snapchat introduced its first parental control center, aimed at helping parents keep t...
Samantha Murphy Kelly, CNN Business

Snapchat rolls out option to let parents see who their teens are messaging

Snapchat on Tuesday introduced its first parental control center, nearly 10 months after an executive from the company told Congress it was developing tools aimed at helping parents keep their teens safe.
2 days ago
Workers assemble laptop computer on the assembly line at Hasee Computer company's manufacturing cen...
Rishi Iyengar, CNN Business

The next frontier in the tech battle between the US and China

A new battleground is emerging: the components that power our smartphones, computers, automobiles and home appliances.
2 days ago
The East Bay Starbucks location on University Avenue in Provo. (Starbucks)...
Josh Ellis

Provo Starbucks gets first EV chargers as part of Denver to Seattle network

Four electric vehicle charging stations have been installed at a Provo Starbucks as part of a plan to electrify an underserved route from the Rocky Mountains to the Pacific Northwest. 
3 days ago
Diablo Canyon Nuclear Power Plant (PG&E)...
MICHAEL R. BLOOD, Associated Press

Not so fast: California’s last nuke plant might run longer

California's last operating nuclear power plant could get a second lease on life.
4 days ago
FILE: Elon Musk (Photo by Win McNamee/Getty Images)...
Associated Press

Musk says Twitter deal could move ahead with ‘bot’ info

Elon Musk said his planned $44 billion takeover of Twitter could move forward if the company can confirm details on which accounts are ‘spam bots’ or real people.
6 days ago
MIAMI, FL - AUGUST 14:  In this photo illustration, the icon for the dating app Tinder is seen on t...
Sara Ashley O'Brien, CNN Business

Tinder’s first female CEO out after less than a year

Tinder's newest CEO is out after less than a year on the job, marking the second high-profile female executive to depart its parent company.
9 days ago

Sponsored Articles

tips how to quit smoking...

7 Tips How to Quit Smoking | Quitting Smoking Might be One of the Hardest Things You Ever Do but Here’s Where You Can Start

Quitting smoking cigarettes can be incredibly difficult. Here are 7 tips how to quit smoking to help you on your quitting journey.
Photo: Storyblocks...
Blue Stakes of Utah 811

Blue Stakes of Utah 811: 5 Reasons To Call 811 Before You Dig When Working in Your Yard

Call before you dig. Even at home, you could end up with serious injuries or broken utilities just because you didn't call Blue Stakes of Utah 811.
Days of...
Days of '47 Rodeo

TRIVIA: How well do you know your rodeo? Take this quiz before you go to the Days of ’47!

The Utah Days of ’47 Rodeo presented by Zions Bank is a one-of-a-kind Gold Medal Rodeo being held July 20-23, 25 at 7:30 PM. The Days of ’47 Rodeo How well do you know your rodeo trivia? Take the quiz to test your know-all before heading out to the Days of ’47 Rodeo at the […]
cyber security through multi factor authentication setup...
Les Olson IT

How multi factor authentication setup helps companies stay safe

Multi factor authentication (MFA) setup is an important security measure that every company should implement for their workers. It’s also wise to install it for your personal and home accounts.
...
Lighting Design

Check out these stunning lamps with stained glass shades

Lamps with stained glass shades are statement pieces that are more than simply aesthetic. They also meet a functional requirement: to light up a room.
Address Bar of internet browser shows internet access...
AARP Utah

Utah voters 50+ support increased access to Internet

The AARP surveyed Utah voters aged 50 plus about internet access and if they support the expansion of broadband, especially in rural areas currently lacking it.
Electric truck maker Rivian, backed by Amazon, goes public