Amazon uncovers 20% stake in Rivian in front of EV creator’s IPO

Amazon uncovers 20% stake in Rivian in front of EV creator’s IPO

Amazon revealed Friday that it owns a 20% stake in Rivian, the electric automaker that petitioned for an IPO earlier this month. Amazon on Friday declared a sizable stake in Rivian Automotive, a start-up developing electric vehicles, including the retail giant’s commercial delivery vans.

As of September 30, the e-commerce giant held equity investments, including favored stock of Rivian that represented around 20% ownership interest, as per the filing. That holding had a “carrying value” of $3.8 billion, up from $2.7 billion as of December 31, 2020.

As of Sept. 30, Amazon held equity investments “including preferred stock of Rivian Automotive, Inc. representing an approximately 20% ownership interest” that had a conveying worth of $3.8 billion, up from $2.7 billion on Dec. 31, the organization revealed in a SEC filing. Amazon has put more than $1.3 billion in Rivian to date, Rivian said in a different securities filing earlier this month.

The disclosure, which popped up in a regulatory filing, gives new understanding into how intently Rivian’s future is attached to Amazon. Amazon has put $1.345 billion into Rivian, as indicated by the EV producer’s first sale of stock. Amazon likewise as of late bought $490 million worth of convertible notes in Rivian that will change over to Class An offers after the IPO, in accordance with specific pricing provisions.

Amazon isn’t only an investor in Rivian; it’s additionally a client. In September 2019, Rivian went into a concurrence with Amazon to create 100,000 electric delivery vans. Rivian revealed recently that it hopes to convey somewhere around 10 vehicles in the long stretch of December 2021. All of the vans (that would be the excess 99,990) will be delivered by 2025.

At the point when Rivian’s initial public offering filing first dropped it was clear Amazon was a major part of Rivian’s universe. For example, there are 81 mentions of Amazon in the Rivian S-1 filing, a big number because of Amazon’s dual status as investor and customer.

At that point, it appeared to be that Amazon owned at least 5% of Rivian, however that last number was not yet accessible. The revelation from Amazon shows that its stake is far bigger.

Ford Motors likewise holds a stake greater than 5% in Rivian. Ford executive Alexandra English left the Rivian board in May, the organization uncovered in its IPO outline this month.

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