Monster Rivian’s IPO is worth over US $ 100 billion

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by Rivian the share price rose in the wake of the largest initial public offering since Facebook.

The US startup announced an IPO of 153,000,000 Class A common stock at a public offering price of US $ 78.00 per share (A $ 106.36), only for deals opening at 106.00. US $ 75 per share (A $ 145.62) and reach a height of just over US $ 119.

At the time of writing, it is sitting at a share price of around US $ 100 (A $ 136.42).

Based on its debut price, Rivian has a market valuation of more than $ 100 billion ($ 136.4 billion), more than any US automaker other than Tesla.

For context, General Motors has a market valuation of around US $ 85 billion, while Ford – one of Rivian’s top financiers – stands at US $ 77 billion.

Another electric vehicle startup, Lucid Motors, is worth approximately US $ 64 billion, demonstrating the market’s enthusiasm for electric vehicle manufacturers. Like Rivian, he has just started vehicle manufacturing.

Not only is Rivian new to vehicle manufacturing, but it has also admitted that it doesn’t expect to be profitable for the foreseeable future as it accelerates operations.

This is what the startup claimed in its S-1 prospectus filed with the United States Securities and Exchange Commission (SEC). However, it’s worth noting that it took Tesla nearly 20 years to make a profit.

The first production Rivian R1T electric utility vehicle rolled off the line in Illinois in September 2021, with its R1S SUV counterpart slated for later this year.

It says its factory in Normal, Illinois can currently build up to 150,000 vehicles per year and plans to expand that capacity to 200,000 per year by 2023.

Not all that capacity will be dedicated to R1T and R1S; Rivian has a deal with major backer Amazon to build 100,000 delivery vans, the first 10,000 of which will be delivered in 2022.

Rivian is also reportedly looking at a second US plant, likely in Texas. Its only plant currently is one in Normal, Illinois, which was acquired by Mitsubishi.

Reports suggest it is also looking into the possibility of establishing a UK establishment.

It is part of a future growth strategy which, according to its SEC filing, will see it enter Western European markets in the short term and “major Asia Pacific markets” thereafter. This suggests that an eventual Aussie toss could be in the cards.

Rivian has beaten its all-electric rivals in production, including the Tesla Cybertruck, GMC Hummer EV Other Ford F-150 Lightning.

The Rivian two-model range will be powered by a choice of three different battery packs, with capacities of 105kWh, 135kWh and 180kWh. The latter two claimed autonomy of 505 km and 643 km respectively.

The first R1T models are equipped with a four-wheel drive powertrain with a total output of 622 kW of power and 1231 Nm of torque, with a 0-60 mph (0-96 km / h) time of three seconds.

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