How Much Rivian Stock Does RJ Scaringe Hold Amid the IPO?
Rivian founder RJ Scaringe is sitting pretty as his stock goes public. What stake in Rivian stock does he hold?
Nov. 10 2021, Published 10:15 a.m. ET
As stock for Tesla (NASDAQ:TSLA) takes a beating after founder Elon Musk's Twitter poll told him to sell 10 percent of his Tesla stock, another electric vehicle brand is hitting the public market for the first time—Rivian.
Amid Rivian's IPO, what stake in the company does founder RJ Scaringe hold—and will the stock head in the right direction for investors?
Rivian stock IPOs, RJ Scaringe set to see his net worth swell
Rivian (NASDAQ:RIVN) stock completed its IPO on Nov. 10 and boasted a valuation of more than $77 billion. Founder RJ Scaringe is poised to see his net worth balloon 12 years after founding the company in 2009.
What started out as a luxury electric sports car idea eventually pivoted to the big leagues—trucks, SUVs, and commercial vans. While Scaringe didn't think that he would be able to successfully compete with Musk's Tesla, he knew he stood a chance in the rugged and utility vehicle sector.
Rivian's IPO is raising nearly $12 billion in capital with shares priced at $78 a pop.
Jeff Bezos thinks RJ Scaringe is the bee's knees
Amazon and Blue Origin founder Jeff Bezos is a huge fan of Rivian vehicles. He even drove up to a space launch site in a Rivian SUV. That's why Amazon (NASDAQ:AMZN) owns 22 percent of the company. Also, Amazon is a big customer with an order of 100,000 vans that will electrify its delivery routes.
With big names on his side, Scaringe is holding tight to his earnings.
Amazon isn't the only big company backing Rivian. Ford Motor Company (NYSE:F) also owned a 12 percent stake, which eventually grew to 20 percent. Ford beat out GM for the chance to hold a portion of Rivian. Cox Automotive also owns a portion of Rivian.
Rather than taking his quickly growing capital, Scaringe likely sees his backers as a vehicle for his own ownership stake.
What percentage of Rivian stock does RJ Scaringe own?
According to Forbes, Scaringe owns about 20 percent of Rivian. With the company worth an estimated $70 billion following the IPO, that puts Scaringe's Rivian stake somewhere around $14 billion.
The stake isn't liquid, and investors are beholden to a lockup period for a certain amount of time (usually between 90 and 180 days) after an IPO, which means that Scaringe's wealth is tied up in Rivian for a while.
Will Scaringe sell any stock after Rivian IPO's lockup period ends?
For Scaringe, this is just the beginning. When Tesla went public in 2010, it was trading for a few bucks per share. The stock didn't take off until nearly a decade later and has since soared in value to reach more than $1,000 per share.
Scaringe knew that he couldn't compete in the same space as Musk, but he's still making his mark on the electric vehicle world. As for his Rivian stake, that's an asset he will likely hold on to as his company develops.
