Rivian will begin trading today after an IPO valuing him at nearly $ 70 billion.

Rivien , a manufacturer of electric trucks and vans, goes public in a share price which values ​​the company at nearly $ 70 billion, a ...


Rivien, a manufacturer of electric trucks and vans, goes public in a share price which values ​​the company at nearly $ 70 billion, a remarkable figure that underscores the belief on Wall Street that the rapidly growing electric vehicle market is still a wide open field.

In a securities repository on Tuesday, Rivien said he was selling his shares in the offering at $ 78. To that amount, it will raise nearly $ 12 billion. This fundraising figure would exceed Uber, which raised $ 8 billion when it went public in 2019.

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

The supply market environment was rocked this week as shares of Tesla, the leading electric car maker, plunged after its chief executive, Elon Musk, said it may sell some of its actions.

Rivian has a huge appetite for money. Before that Initial Public Offering, he raised over $ 10 billion from investors including Amazon and Ford, and it expects to consume billions of dollars as it tries to ramp up production of its three vehicles: a high-end pickup truck aimed at drivers who love off-roading; a sport utility vehicle; and a delivery van that was developed with Amazon, which owns a significant stake in Rivian and has ordered 100,000 vans.

Rivian and many other automakers are betting that consumers are poised to make the switch to electric vehicles quickly over the next decade. General Motors has announced its intention to phase out production of gasoline vehicles by 2035. Tesla, which is on track to sell nearly a million electric vehicles globally this year, has a market cap of $ 1,000 billion, surpassing the combined value of GM, Ford, Toyota Motor, Volkswagen, BMW and several. other car manufacturers.

Much now depends on Rivian’s ability to ramp up production to meet customer orders. Tesla went through many difficult months when it struggled to produce its sedan in large numbers.

By the end of last month, Rivian had shipped just 156 of its pickups, known as the R1T; it plans to begin deliveries of the SUV, the R1S, next month. He said in a financial file that he did not expect to fulfill the 55,400 orders for trucks and SUVs before the end of 2023, stressing that it would take time for production lines to produce a significant number of vehicles.

Like other electric vehicle makers that have gone public this year, Rivian reports significant losses. In the first six months of this year, he had a net loss of $ 994 million, almost as much as during the whole of 2020, when it lost $ 1.02 billion. Investors may be willing to tolerate losses for a period of time. The van contract with Amazon should in theory guarantee a stable source of income.

And Rivian can also benefit from the auto industry’s point of view that it’s run well. Its general manager, RJ Scaringe, holds a doctorate in mechanical engineering from the Massachusetts Institute of Technology and, so far, has not been easily distracted or the source of unnecessary controversy, criticism of Tesla’s Mr Musk.

Rivian’s pickup and SUV are aimed at affluent buyers who love the outdoors. “Keep the world adventurous forever,” proclaims Rivian’s IPO prospectus.

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

At the IPO price, Rivian will be valued even more, at around $ 75 billion, if its bankers sell additional shares they have available to meet high demand and certain shares issued as compensation for employees are included in the calculation.

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Newsrust - US Top News: Rivian will begin trading today after an IPO valuing him at nearly $ 70 billion.
Rivian will begin trading today after an IPO valuing him at nearly $ 70 billion.
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