Rivian Eyes Much Bigger Valuation — Topping GM's, Ford's — As First Deliveries Due Soon

Rivian Automotive, the Amazon (AMZN)- and Ford (F)-backed EV pickup truck maker, has reportedly filed for an initial public offering and estimates a massive valuation.




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In a confidential filing, the company is seeking a valuation of around $80 billion, according to Bloomberg, citing sources.

That would top General Motors‘ (GM) market cap of $72.3 billion and Ford’s market cap of $53 billion, though it would still trail Tesla‘s (TSLA) $705 billion valuation.

Rivian’s $80 billion forecast is also up from February, when the company reportedly sought a valuation of at least $50 billion.

The Irvine-based company submitted its S-1 registration with the Securities and Exchange commission last week, Bloomberg said, and aims to go public around Thanksgiving.

Rivian is working with advisers from Goldman Sachs, JPMorgan, and Morgan Stanley.

Meanwhile, Rivian is set to deliver its first vehicles in September, according to a recent Orange County Register report, citing a letter sent to pre-order customers. The automaker is waiting on final approvals before deliveries can begin. Deliveries had also been delayed due to supply chain issues.

Rivian founder and CEO RJ Scaringe also noted in his letter that the company plans to ramp up the buildout of its charging infrastructure.

Service centers will also continue to grow. There are currently five centers. Rivian plans to open more than 100 by the end of 2023.


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EV Rivals

Meanwhile, Rivian has a factory in Normal, Ill., and other facilities in the U.S., as well as a presence in the U.K.

Rivian currently has two vehicle models in production. The R1T electric pickup starts at around $67,500 and is equipped with camper-friendly features such as a pullout kitchen and rooftop tent. The seven-seater R1S goes for about $70,000. Each has 300+ miles of range on a single charge. The preorder launch editions of the two vehicles sold out at the end of 2020.

Florida-born Scaringe, a mechanical engineer, started the company in 2009. He bought a former Mitsubishi plant in 2017 for production. Then Rivian secured $200 million more of debt in 2018 for development and testing.

In 2019, Amazon invested $700 million, and Ford invested $500 million in Rivian. Amazon has also ordered 100,000 Rivian vans to be delivered by 2030.

Investment giant T. Rowe Price is also a backer with a $1.3 billion investment in 2019 and a $2.5 billion infusion in 2020.

Rivian expects to deliver 20,000 vehicles in 2021. It projects doubling that figure for 2022.

Rivian’s vehicles will be going up against Tesla’s Cybertruck and Lucid‘s (LCID) SUV. Ford’s electric F-150 is also a rival.

China-based rival Nio‘s (NIO) ES8 SUV is also a competitor, although it’s currently only sold locally. Warren Buffett-backed BYD (BYDDF) and Xpeng (XPEV) are also key players in this space.

EV Stocks

BYD stock edged up 0.3% on the stock market today. Nio dipped 0.6%, Xpeng lost 0.8% and Tesla stock rose 1.5%. Meanwhile, Lucid fell 2.1%.

Tesla is a Leaderboard stock. It has a new aggressive buy point of 730. Tesla stock has found support at its converged 50-day and 200-day lines, according to MarketSmith chart analysis.

Among other U.S. carmakers making EVs, GM gained 2.5% and Ford rose 3.1%.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.

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