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Tesla’s strong rival?

The largest IPO this decade is approaching – Rivian Automotive, the electric vehicle (EV) company backed by Amazon and Ford, officially filed for an IPO last Friday.

Rivian? I’ve never heard of it…

Think Tesla, but with larger cars – Rivian focuses on electric trucks, SUVs, and delivery vans. It has only started delivering cars to customers last month and has lost nearly USD 1 bln in the first half of 2021. More losses are expected as the company expands.

  • No cause for alarm 😮‍💨 Fellow EV firm Tesla only made its first full-year profit in 2020, a full 10 years after it IPO’ed.

Amazon owns at least 5% of Rivian and has an exclusive contract with the company to order 100,000 electric delivery vans. Having the tech giant as a key customer could be one reason why Rivian could be one of the largest IPOs in recent years.

Just how large is this IPO?

Back to numbers: Rivian plans to raise 8 bln for its IPO, at USD 80 bln valuation! If the fund size holds, it will be the fourth-largest IPO in the past 10 years, only behind Alibaba, Facebook, and Uber.

    • Money from the IPO will help Rivian continue to expand production, mostly to build more assembly plants for their cars.
  • “Tesla killer”? Too early to say… Rivian is still tiny compared to Tesla’s USD 740 bln market cap. Plus, Tesla is also planning to compete with Rivian by building its own pickup truck.

Tesla: “Hey, you stole our tech!” 😡 Tesla has filed multiple lawsuits against Rivian since 2020, accusing the company of stealing Tesla’s battery technology and employees.  Rivian has not commented on the allegations.

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