Rivian’s highly anticipated IPO could take place as early as September, with the electric truck launch looking for a valuation of at least $ 50 billion, Bloomberg reported.
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The Rivian IPO’s timeline could change and even shift to next year, but the company has discussed its plans with bankers, sources told Bloomberg.
Rivian, who has support from Amazon (AMZN) and Ford (F), has raised $ 8 billion in recent years and is seen as a credible challenger Tesla (TSLA).
Rivian’s IPO would be one of the most significant since Tesla’s debut in 2010. A round of funding in January valued the EV startup at $ 27.6 billion.
And valued at $ 50 billion or more, Rivian could also be the largest electric vehicle IPO, dwarfing Tesla’s $ 1.7 billion market cap when the IPO both Nio’s (NIO) $ 6.4 billion, Xpeng’s (XPEV) $ 11 billion and Li Cars (LI) $ 10 billion.
Meanwhile, such a high valuation would also place Rivian above Ford’s market cap, which is currently around $ 47 billion.
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Rivian IPO, EV Shares
Ford’s shares fell 0.5% to 11.87 in Wednesday’s stock market. General engines (GM) share fell 3% as the automaker predicted the chip shortage could wipe out $ 2 billion from profits in 2021. Tesla lost 1.1%.
Rivian plans to sell the R1T electric pickup truck and the R1S electric SUV. In addition, Rivian aims to have 10,000 Amazon electric vans on the road by 2022, and 10 times as many by 2024.
While Ford posted a surprising fourth-quarter profit and increased investment in electric vehicles on Feb. 4, Ford put its Rivian profit at $ 900 million. In April 2019, the car giant invested $ 500 million in Rivian. But a year later, Ford canceled plans for an all-electric SUV with Rivian technology.
A Rivian IPO would also like the recent trend of EV startups Nikola (NKLA), Lordstown Motors (TO DRIVE), Hyliion (HYLN), Fisker (FSR) and Canoo (GOEV) publicly available through blank check mergers.
Nikola and Lordstown are also developing electric trucks that can compete with Rivian’s, while GM plans to launch its electric Hummer later this year with Tesla’s Cybertruck expected next year.
Find Aparna Narayanan on Twitter at @BuienRadarNL.
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