Rivian, the Amazon-backed electric vehicle producer, looks to bring $8.4 billion up in IPO

Amazon-backed electric vehicle producer Rivian is looking for a valuation that would put it among the world’s most valuable automotive organizations when it goes public in the coming days, as per a changed S-1 filing on Monday.

Rivian said it hopes to offer 135 million shares of its Class A common stock priced between $57 and $62 per share. An extra 20.25 million shares will be made accessible to the IPO’s underwriters. Rivian could raise as much as $8.4 billion when it debuts if shares trade at the high end of its range, or a total of more than $9.6 billion if underwriters exercise their options.

The California-based organization’s filing demonstrates a targeted valuation of more than $53 billion dependent on extraordinary shares, however, that number could change dependent on investor demand and economic situations. The Wall Street Journal announced Rivian is looking for a valuation of more than $60 billion.

Rivian said it would make a portion of its shares accessible to retail investors through SoFi’s online brokerage platform. The organization will trade on the NASDAQ exchange under the stock symbol “RIVN.” Rivian is relied upon to start public trading next week.

With a strong debut, Rivian could procure a higher valuation than Honda, which is at present valued at generally $53 billion. Ford Motor Company, which holds a stake in Rivian, is presently valued at generally $71 billion, while General Motors is valued at generally $80 billion.

Rivian said it hopes to deliver around 1,000 of its R1T electric pickup trucks before the year’s over. Last month, the organization said it lost almost $1 billion through the first half-year of the year.

Last month, Amazon uncovered it holds around a 20% stake in Rivian. The e-commerce giant has as of now contracted Rivian to give 100,000 electric delivery vans by 2030.

Rivian reports that as of the finish of October, it has created and delivered respectively 180 and 156 Rivian R1T electric pickups. New information arose by the method of the new IPO-related document.

The first R1T moved off the assembly line in Normal, Illinois on September 14, which implies that over around 48 days, the organization was producing the R1T at an average rate of almost 3.8/day (including weekends). That sounds sensible for a startup and such a complex product.

Rivian R1T sales – October 2021

Up until this point, nearly all R1T were delivered to Rivian’s workers – that would clarify why we don’t see an excessive number of independent reviews and tests yet.

The main news is that the production rate is expanding and in December the R1T will be joined by the R1S SUV and Rivian EDV vans for Amazon.

Production plan

As per the plan, before the current year’s over, Rivian will create and deliver more than 1,000 electric vehicles (all types). In any case, the past rumors that the organization focuses on the EDV van over R1T/R1S appear to be false.

Here is the latest official Rivian’s plan for 2021:

Total expected production: over 1,200
R1T: approximately 1,200
R1S: approximately 25
EDV: approximately 10
Total expected deliveries: over 1,000
R1T: approximately 1,000
R1S: approximately 15
EDV: approximately 10

As should be obvious, the attention is on the first model – R1T while the R1S and EDV will scarcely begin in December.

Pre-orders surges

An interesting thing is that the number of pre-orders has expanded throughout October observably.

The organization had about 48,390 R1T/R1S pre-orders in the U.S. also, Canada as of September 30, and as of October 31, it’s around 55,400 – 7,010 or 14.5% more.

The current number conceivably could last for quite some time. Rivian estimates that it will want to fill the backlog (those are not orders yet) before the finish of 2023.

Taking into account that more orders and pre-orders will set over the final months of 2021 and 2022, it appears to be that the production in the initial two years is generally covered by demand.

Rivian says that its plant is prepared to produce up to 150,000 vehicles every year and this level will be reached (on an annualized basis) in mid-2024. The plant is relied upon to deal with 200,000 vehicles each year after an upgrade.

We should not fail to remember that Rivian has likewise up to 100,000 EDV vans to create for Amazon by 2025, incorporating 10,000 in 2022.