According to the latest report Rivian Automotive, an electric car start-up that had received investment from Amazon substantially increased the expected issuance price of its stock on November 5. The company’s goal is to make an initial public offering (IPO) to obtain a market value of up to 65 billion US dollars.
Earlier last week, the company stated that its goal was to obtain a market value of more than $53 billion at a price of $62 per share. But their current expectation is to sell 135 million shares at a price of US$72-74 per share on November 9th to raise close to US$10 billion.
Before raising the price range, the company successfully conducted an investor roadshow last week. Investors in a large Wall Street IPO believe that Rivian has the potential to become the next important company in the electric car industry dominated by Tesla.
After completing the IPO, Rivian is likely to become another company that has raised more than US$8 billion in ten years after Alibaba and Facebook.
Although the electric car manufacturer has not yet begun to sell vehicles on a large scale, if it does gain a market value of $65 billion, its market value will surpass Stellatis and be close to traditional automakers such as Ford and General Motors.
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Recently this year, Rivian has been making large-scale investments in production capacity to increase production. In September of this year, the company officially launched the high-end pure electric pickup truck R1T, taking the lead in bringing electric pickup trucks to the market before other competitors such as Tesla, GM, and Ford. As of October 31 this year, the company has received approximately 55,400 orders for R1T pickup trucks and R1S SUV models in the U.S. and Canadian markets.
Rivian previously stated that they have already started the delivery of R1T and have recorded revenue in the three months ended September 30. However, due to the increase in production costs, the company’s net loss is expected to increase during this period.
As consumers pay more and more attention to the environmental protection of vehicles, the electric vehicle market is currently developing rapidly, and many brands have begun to regard electric vehicles as their high-end models. In the most recent quarter, Tesla’s output set a new record again, which shows that consumer demand for electric vehicles is rapidly increasing.
In addition to ordinary consumers, corporate customers are also beginning to pay more and more attention to electric vehicles. Hertz, a large car rental company, recently announced that they have ordered 100,000 Model 3 electric vehicles from Tesla. Amazon also ordered 100,000 electric delivery vehicles from Rivian as part of the e-commerce giant’s broader effort to reduce its carbon footprint.
However, in the consumer and commercial truck market, Rivian will face competition from other automakers. Ford previously announced that its F-150 Lightning electric pickup truck has received more than 160,000 orders, and its electric version of Transit commercial vehicle has been “completely sold out.” In addition, GM is also stepping up the production of electric delivery vehicles, SUVs, and pickup trucks.
Morgan Stanley, Goldman Sachs, and JPMorgan Chase are the lead underwriters of Rivian’s IPO, which will be listed on the Nasdaq under the trading symbol “RIVN”.
