Startup Rivian IPO could become the biggest in the EV industry in history.

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Posted by Tomáš Kabeláč

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Rivian, one of the most serious competitors to the biggest producer of EV, Tesla, has attracted the attention of investors. And one of them is the founder of Amazon, Jeff Bezos. The startup Rivian is now preparing its IPO, where the value of the company could rise to $50bn.

Startup Rivian is preparing adventurous electromobility for IPO

Startup Rivian, which produces off-road electric vehicles, is preparing for a huge event. If everything goes as planned, Rivian’s IPO can reach an estimated value of $50 bn.

Rivian is often mentioned as one of the most serious competitors to the most valuable EV producer company, Tesla. But, when compared to the huge valuation of Rivian, Tesla’s IPO value is significantly lower at $1,7bn. We can’t forget that Tesla was the first EV company to announce its IPO though.

Some other EV producers, who already had their IPOs, include: Nio – $6,4bn, Xpeng – $11bn and Li Auto – $10bn. We can see here that the trend in the valuation of EV companies is steadily rising. Still, Rivian presents a huge step with its valuation and that is why the startup has attracted so many investors.

The expected Rivian’s IPO became even more widely discussed after Rivian announced a partnership with Amazon, the biggest company in the e-commerce sector.

Sustainable delivery from Amazon

When Rivian closed a deal with Amazon, it secured the production of 10 000 electric vans by 2022 and another 100 000 electric vans by 2030. Amazon signed the new partnership as a part of the company’s The Climate Pledge, which represents a promise of how they want to reach carbon-emission neutrality by 2040.

Amazon itself invested $700M in Rivian in February because the company sees the interesting potential that Rivian has. This potential was further confirmed by an investment from automaker Ford, in value of $500M, at the end of April 2019.

The last Rivian investment was again from Jeff Bezos, in value of $2,65bn, through the Climate Pledge Fund. Since the beginning of 2019, the startup has managed to raise more than $8bn in total.

Right now the people of Rivian are quite busy. Together with Amazon, they are testing their first models of electric delivery vans in Los Angeles. They are also working to deliver their first-ever orders of B2C SUV models R1T and R1S this summer. And last but not least, the startup Rivian is preparing the biggest IPO of EV producers in history.

Rivian is also considering the option to move the IPO to 2022 due to the Covid-19 pandemic. If this scenario happens, the people of Rivian still have many projects to work on which will, if done right, increase the startup’s value even more.

Resources
https://www.theverge.com/2021/2/3/22264174/amazon-rivian-electric-delivery-van-la-test-cities
https://www.cnbc.com/2021/02/03/amazon-is-testing-rivian-electric-delivery-vans-in-los-angeles.html
https://rivian.com/
https://www.aboutamazon.com/news/transportation/amazons-custom-electric-delivery-vehicles-are-starting-to-hit-the-road
https://www.investors.com/news/rivian-ipo-could-be-biggest-ev-maker-vallue-topping-investor-ford/
https://www.bloomberg.com/news/articles/2021-02-10/amazon-backed-ev-maker-rivian-is-said-to-aim-for-ipo-this-year