Rivian Automotive Inc, which is supported by Amazon.com Inc, is focusing on a valuation of more than $53 billion for its U.S. debut, making the electric vehicle producer conceivably nearly as significant as adversary Honda Motor.
The startup is hoping to raise up to $8.4 billion, setting it up to be the third-largest initial public offering (IPO) by funds brought up in the previous decade in the United States.
Just three different organizations have raised more than $8 billion while going public since 2011, as indicated by information from Dealogic.
Alibaba raised a record $25 billion in 2014, Meta Platforms Inc collected $16 billion out of 2012, while Uber made $8.1 billion out of 2019.
Since last year, organizations in the EV space have arisen as some of the hottest investments, particularly among SPAC investors on the hunt after the next Tesla Inc.
While Rivian presently can’t seem to sell any huge volume of its electric vans or trucks, it could almost certainly be valued higher than Ferrari, albeit not exactly Honda, General Motors or its supporter Ford Motor Co.
Established in 2009 as Mainstream Motors by R. J. Scaringe, the organization changed to Rivian in 2011, a name that is derived from “Indian River” in Florida, a place Scaringe frequented in a rowboat as a youth.
The startup has been investing intensely to increase production, including for its upscale all-electric R1T pickup truck, which was launched in September, beating out competition from set up adversaries like Tesla, General Motors and Ford.
Rivian, which unveiled almost $1 billion in losses for the first half of this current year, had around 48,390 pre-orders for its pickup trucks and R1S SUVs in the United States and Canada as of September.
It is right now seeking after a two-track procedure: building electric delivery vans for Amazon and developing an electric pickup and SUV brand focused on well-off people.
Amazon, which unveiled a 20% stake in Rivian toward the finish of October, has ordered 100,000 of its electric delivery vans as part of the e-commerce giant’s effort to cut carbon footprint.
Ford holds an over 5% share in the EV startup, as per a filing with the U.S. Securities and Exchange Commission.