Amazon-backed electric car manufacturer Rivian files for IPO

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Electric car update

Rivian, an electric car company backed by Amazon, has secretly applied for an initial public offering. The company Announce on Friday.

According to people familiar with the matter, the Irvine, California-based company was founded in 2009 and is regarded as a major challenger to Tesla and is currently seeking a valuation of more than $70 billion.

A Rivian spokeswoman declined to comment on the target, nor did she share a timetable when the listing might take place. Goldman Sachs is the leader of this offering.

According to data from PitchBook, Rivian has raised more than $10 billion since the beginning of 2019. In July, Amazon, through its Climate Pledge Fund, led a $2.5 billion investment with D1 Capital Partners, T Rowe Price and Ford Motor Company. Following a USD 2.65 billion round of financing in January, the company is valued at USD 27.6 billion.

Amazon’s investment was made after announcing that it had ordered 100,000 customized electric delivery trucks from Rivian in 2019. The first one will join the e-commerce giant’s delivery fleet in 2021. By the end of next year, at least 10,000 vehicles will be on the road.

Rivian also produces sport utility vehicles and pickup trucks, both of which will be produced at the company’s plant in Normal, Illinois.

Rivian promised that the price of its pickup truck was $67,500 at the time of launch, with a cruising range of more than 300 miles. It will compete with similar efforts by General Motors, Volkswagen and Ford.

However, CEO RJ Scaringe stated in a letter to customers last month that the “cascading effects of the pandemic” caused the delivery of vehicles originally scheduled to begin in July to be delayed until later this year. The company said it plans to launch a model with a cruising range of more than 400 miles in January 2022.

Scaringe wrote: “From facility construction to equipment installation, to the supply of auto parts (especially semiconductors), everything is affected by the pandemic.”

The company confirmed in July that it is seeking to establish a second manufacturing plant in the United States, and it is reported that it is also considering establishing a plant in Europe.

The company has smaller facilities in other locations, including an engineering office in Woking, UK, which focuses on “advanced concepts, bodywork and lighting.”

Ford’s stock price rose 3% after the announcement on Friday. Amazon’s stock price also rose slightly.

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