Rivian for victory: electric vehicle maker aims for $ 8 billion IPO windfall

Electric vehicle maker Rivian, backed by Amazon, Ford and T. Rowe Price, is seeking to raise between $ 5 billion and $ 8 billion in an initial public offering, Reuters reports.

The company last month confidentially filed with the Securities and Exchange Commission an IPO that could value the company at $ 80 billion.

“The size and price range of the proposed offering has not yet been determined,” the company said in a statement to media at the time. “The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions.”

The company declined to comment on Reuters, which cited people familiar with the matter in the latest report. The IPO could take place as early as October.

In the past 10 years, only three IPOs in the United States have generated more funds for companies: Alibaba in 2014, when it raised $ 25 billion; Facebook’s $ 16 billion in 2012; and Uber’s $ 8.1 billion in 2019.

Rivian has raised more than $ 10.5 billion from Amazon (NASDAQ: AMZN), Ford Motor Co. (NYSE: F), T. Rowe Price Associates and Fidelity, among others.

In fall 2019, Amazon ordered 100,000 electric delivery vans from the Southern California-based startup, following an initial $ 700 million investment from the e-merchant earlier that year.

Read: Rivian files backed by Amazon for $ 80 billion IPO

Read: Workhorse Group’s latest electric truck maker under SEC control

Prior to that date, Rivian had positioned itself as an adventure vehicle builder, focused on an electric pickup truck, the Rivian R1T, and an electric SUV, the Rivian R1S. In October 2020, Rivian released a prototype of the Amazon vehicle, which is expected to begin delivery at the end of the year. Some of the original vehicles are now on the roads.

Amazon began testing Rivian vans in March in the San Francisco area. The vans, which offer 150 miles of range on a single charge, three levels of shelves with a bulkhead door that can be opened and closed for added driver protection on the road, and a suite of roadside assistance technologies and road, are being driven by Amazon employees.

Amazon expects to have 10,000 Rivian vans in circulation by 2022 and all 100,000 orders by 2030.

The company is in talks with officials in Fort Worth, Texas, and Mesa, Arizona, about building a $ 5 billion plant that would produce 200,000 vehicles a year. The new funds would help expand production beyond its current plant in Normal, Illinois.

Reuters said the filing documents it viewed showed the facility investment to be at least $ 5 billion.

Rivian is trying to reverse the negative trend for electric vehicle manufacturers to go public.

Workhorse Group (NASDAQ: WKHS) has struggled to bring its electric vans into production, continually pushing deadlines, and on September 2, it was revealed that the company was under an SEC investigation stemming from allegations by short sellers of shady business practices.

Workhorse lost on a lucrative US Postal Service contract this summer to build the next-generation mail delivery vehicle. She sued the government over the contract, which was awarded to Oshkosh Corp, and it wasn’t until Wednesday that the company announced it was abandoning its lawsuit.

A short seller report also hit Nikola Motor (NASDAQ: NKLA) hard last year, leading the hydrogen-powered electric truck maker to fire its founder and CEO Trevor Milton. Milton has since been indicted by the SEC on three counts of fraud for allegedly attempting to drive up Nikola’s stock price for personal gain.

Workhorse also has ties to another electric pickup truck maker, Lordstown Motors (NASDAQ: RIDE), which originated from Workhorse in 2019 and was created by Workhorse founder Steve Burns. The SEC is investigating Lordstown’s pre-order number inflation for its Endurance pickup truck. LMC also filed a “going concern notice” with the SEC in June, suggesting that without new money, it could close its doors within a year. He reiterated this advice in July.

Click for more articles on Modern Shipper by Brian Straight.

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