Rivian Isn't a Publicly Traded EV Company, Might Announce IPO in 2021
Rivian, the maker of EVs including Amazon delivery trucks, isn't publicly traded. The company might be preparing for an IPO as soon as this fall.
Aug. 6 2021, Published 12:15 p.m. ET
Rivian, the company that manufactures EVs, isn't a publicly traded company yet. Rivian is working on the debut of its electric truck, the R1T, which has been delayed until September of 2021. It's also manufacturing a sport utility vehicle, the R1S.
Although Rivian is still a private company, Bloomberg reported earlier in the year about potential discussions and preparations for an IPO. The sources of information on Rivian’s possible IPO plans elected not to be named, but the information suggested that the company could go public as soon as the fall of 2021.
What vehicles is Rivian manufacturing?
Rivian is working on two primary electric vehicles—its truck and its SUV product. The Rivian truck, or the R1T, will have a 300+ mile range when it launches. In January of 2022, the company plans to have a 400+ mile range model of the R1T. Rivian’s truck is expected to boast a towing capacity of 11,000 pounds and be able to reach a speed of 60 mph in three seconds.
Rivian's SUV, the R1S, is a seven-seater that starts at about a $70,000 price tag. The SUV has a 7,700-pound maximum towing capacity and, like the truck, should have about a 300-mile range on a single charge. The company says that after the launch of this original R1S, it plans to announce the timing of another SUV release with a 250+ mile range.
When is the Rivian IPO?
Although a Rivian IPO hasn’t been officially announced, the company has been aggressively raising capital. In July, Rivian announced the closure of a $2.5 billion private funding round.
Leading that funding round were Amazon's Climate Pledge Fund, D1 Capital Partners, Ford Motor Company, and funds and accounts advised by T. Rowe Price Associates, Inc. Since 2019, the company has raised a total of $10.5 billion in new capital.
According to Bloomberg’s unidentified source, Rivian has already engaged underwriters to handle its impending IPO proceedings. The lead underwriters are Goldman Sachs Group Inc. JPMorgan Chase & Co., and Morgan Stanley.
Rivian’s valuation
The company might be seeking up to a $70 billion valuation if and when it goes public, according to people familiar with the matter. As Motley Fool discussed in July, the valuation might be high, but “Rivian is building a valuable brand and products that will appeal to the masses.”
Details of a Rivian IPO like how many shares would be offered, the price per share, or its ticker symbol aren’t available since the IPO doesn’t appear to be a sure thing yet. However, the company does have products that might enable it to compete with other EV companies like Tesla.
Amazon has ordered 100,000 delivery trucks from Rivian that will have a 400+ mile range, with expectation that those will be delivered to Amazon by 2030. Amazon’s $700 million corporate funding round in 2019 not only gave the retailer equity in Rivian, but helped the company that could help reduce Amazon’s carbon footprint and delivery costs.