Why Rivion Matters?

Rivian offered shares to the public during its first public offering, an average cost of $78 per share on November. 9. An I.P.O. lockup which prevents some investors who were early from selling shares for a time which runs from 9.02-May-2022

Rivian Automotive. (RIVEN) is a Company that designs and produces electronic vehicles (E.V.s) and accessories and provides related services. The Company makes and has started delivering its first-generation consumer vehicle, a five-passenger, two-row pickup truck called the R1T. In the coming year, it will begin to provide an S.U.V. with three rows and seven passengers called the R1S. The vehicles are fitted with an array of the most advanced technology systems and are specifically designed to meet the needs of people who live active lives. Rivian is also planning to introduce an electric delivery vehicle (E.D.V.) specifically for businesses.

Rivian’s stock was first listed on the public markets in November. 10th of 2021 in an I.P.O. that was highly anticipated (I.P.O.). A total of 150 million shares were traded at an initial price of $78.00 and valued this Company value to $66.5 billion. The sale raised more than $12 billion in funding to boost expansion. 2 The shares were listed on Nasdaq as “R.I.V.N.” at $106.75. The stock ended the Day in the trading market at $100.73 for each share, giving Rivian a market value of $86 billion. That’s higher than the market cap of Ford Motor Co. (F), which is one of Rivian’s most prominent financial supporters.

Key Takeaways

  • Rivian is an E.V. manufacturer and also provides accessories and services.
  • Rivian was listed on the market by ticker “R.I.V.N.” on November 10, 2021, for the initial offering cost of $78.00.
  • The Company has sold more than 153 million shares, which raised close to 12 billion dollars.
  • Rivian’s market cap stood at $127.3 billion as of the end of trading in November. 12 2021, just three trading days following the Company’s I.P.O.
  • The Company estimates it made between $0 and $1 million in sales, and the net loss was between $1.2-$1.3 billion during the quarter that ended in September. 30th, 2021.
  • A traditional carmaker Ford and the e-commerce Amazon are the two most prominent players. Amazon has Rivian as the largest shareholder.

Rivian is headquartered in California and was established in the year 2009 with the help of Robert J. Scaringe. He graduated from the Massachusetts Institute of Technology; Scaringe is the Company’s C.E.O. (C.E.O.) and the chairman of their board. 67 Scaringe, also known by the Name “R.J.” in the business world, emphasized his long-standing car obsession in a letter included with Rivian’s I.P.O. prospectus. Scaringe began his business intending to create an efficient sports automobile. However, by 2012, he, along with the Rivian team, realized that their original strategy could not be able to meet their objectives. They re-evaluated their approach and changed direction. They redesigned the Company’s approach by focusing on the S.U.V., truck and the crossover segment of the automotive market. Rivian also developed a long-lasting partnership with the e-commerce giant Amazon.com Inc. (A.M.Z.N.) to design delivery vans and an online platform for managing fleets.

Rivian Automotive Rivian Automotive, the California electric vehicle Company, is now submitting paperwork to the Securities and Exchange Commission (S.E.C.) to be a Public Company. In a report filed in November. 9, Rivan stated that it is aiming for the range of $67 billion for the initial public offer (I.P.O.) and also increased the price of its initial shares to $78 instead of the $57-$ $62 range that it had offered the week before.

This would leave Rivian only marginally less valuable than the industry’s stalwarts, General Motors (G.M.) and Ford Motors ( F). This is a remarkable accomplishment for a newly-launched I.P.O. but what’s driving Rivian is growth in the form of electric vehicle giant Tesla, Inc (T.S.L.A.), which has seen its value rise upwards from around 75 billion by the close of the year to over $1 trillion at present.

The prospect of rapid growth is tempting for prospective Rivian I.P.O. investors. Be aware. However, that flashy I.P.O.s are not an assurance. The E.V. market contains the remains of companies that failed to deliver on their promises to address climate change and make your Life better.

Why Rivion Matters?

Rivian offered shares to the public during its first public offering, an average cost of $78 per share on November. 9. An I.P.O. lockup which prevents some investors who were

Rivian is headquartered in California and was established in the year 2009 with the help of Robert J. Scaringe. He graduated from the Massachusetts Institute of Technology; Scaringe is the Company’s C.E.O. (C.E.O.) and the chairman of their board. 67 Scaringe, also known by the Name “R.J.” in the business world, emphasized his long-standing car obsession in a letter included with Rivian’s I.P.O. prospectus. Scaringe began his business intending to create an efficient sports automobile. However, by 2012, he, along with the Rivian team, realized that their original strategy could not be able to meet their objectives. They re-evaluated their approach and changed direction. They redesigned the Company’s approach by focusing on the S.U.V., truck and the crossover segment of the automotive market. Rivian also developed a long-lasting partnership with the e-commerce giant Amazon.com Inc. (A.M.Z.N.) to design delivery vans and an online platform for managing fleets.

Rivian Automotive Rivian Automotive, the California electric vehicle Company, is now submitting paperwork to the Securities and Exchange Commission (S.E.C.) to be a Public Company. In a report filed in November. 9, Rivan stated that it is aiming for the range of $67 billion for the initial public offer (I.P.O.) and also increased the price of its initial shares to $78 instead of the $57-$ $62 range that it had offered the week before.

This would leave Rivian only marginally less valuable than the industry’s stalwarts, General Motors (G.M.) and Ford Motors ( F). This is a remarkable accomplishment for a newly-launched I.P.O. but what’s driving Rivian is growth in the form of electric vehicle giant Tesla, Inc (T.S.L.A.), which has seen its value rise upwards from around 75 billion by the close of the year to over $1 trillion at present.

The prospect of rapid growth is tempting for prospective Rivian I.P.O. investors. Be aware. However, that flashy I.P.O.s are not an assurance. The E.V. market contains the remains of companies that failed to deliver on their promises to address climate change and make your Life better.

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Rivian’s I.P.O. brought in more than 12 billion dollars which is the biggest I.P.O. in the U.S. since 2014. The stock price increased over 21% from the initial cost of its opening until the closing of trading in November. 12 2021, just three trading days following, it went public with the I.P.O. 94 The overall U.S. capital market, which is represented using the S&P 500, was unchanged during the same time. The magnitude of Rivian’s I.P.O. and the swift increase in Rivian’s price reflect investors’ excitement over this E.V. market, particularly for companies trying to create E.V.s that can compete against traditional car manufacturers.

Rivion Financial

Rivian has provided its latest figures in the I.P.O. prospectus. As of September. 30th, 2021 the Company had not made nor delivered vehicles and therefore had not been able to generate significant revenues. The Company provided the initial 11 R1Ts in September of 2021. It produced 12 cars during the period. The Company claimed that these deliveries brought in estimated revenues of between $1 and $0 million over the three months in September. 30th 2021. The Company was successful in financing its business mainly through the sale of securities and borrowing.

Rivian reports that the Company’s net loss in the latest quarter is $1.2 billion, between $1.2 billion and $1.3 billion. The losses for the quarter were four times more than the same period a year ago. The Company said that operating expenses have increased in the last eight quarters while progress in the R1T R1S and E.D.V. vehicle program continues. It anticipates launching the E.D.V. and R1S in December 2021.

Rivian stated that it plans to generate the bulk of its revenue in the near term from the sales of car accessories and regulatory credits. As time passes, the Company will start to earn more substantial gains by offering value-added products that span the entire time-to-market of its vehicles, which will improve its relationship with its customers.

Rivian’s book value total, which is the sum of its liabilities and assets total book value, was $5.5 billion on June 30, 2021. The capacity of the Cash, Cash equivalents and other investments in the Company’s balance sheet at the close of June stood at $3.7 billion. 20 The Company’s E.V. maker has said it will use the profits of its I.P.O. to finance growth and for general corporate goals, such as research and development, sales and general administrative expenses, and capital expenditures.

What is Rivian Value?

Rivian’s shares ended trading at $129.95 in November. 12 2021. At that time, the Company’s market capitalization is $127.3 billion, more than twice the estimate from the initial price. 222 Before the I.P.O., the Company’s most recent private financing round was held on July 23, 2021. 23 The Company received $2.5 billion in funding from a consortium of investors, led by Amazon’s Climate Pledge Fund, D1 Capital Partners, Ford, and also funds and accounts overseen through T. Rowe Price Associates Inc. The new funds increased Rivian’s total private funding from the beginning of 2019 up to $10.5 billion. 24 In the previous round of financing in January 2021, the Company received $2.7 billion, and valued the total at $27.6 billion. 25

The biggest shareholders in the Company and the percentage of their holdings that are beneficially owned after the sale include: Amazon, with 18.5% of its shares. The funds and accounts are run via T. Rowe Price Associates (15.5 per cent); Global Oryx Co. Ltd. (13.1 per cent); Ford (11.8%) as well as Manheim Investments Inc. (4.6 per cent). 11

Rivian Important Competitors

Rivian faces a broad competition both within the wider automobile industry and in the small but rapidly expanding E.V. segment. The Company anticipates the competition within the E.V. market to increase because of a growing regulatory push to promote alternative fuel vehicles as well as other reasons. 26 Rivian’s competitors include, as previously mentioned, Tesla and Ford, as well as other traditional automakers that are making a massive move in the E.V. market, including the German-based Volkswagen AG (VOW3) and General Motors Co. (G.M.). Rivian is also competing with China-based electric vehicle makers such as NIO Inc. (NIO) and B.Y.D. Auto, which is an affiliate that is part of BYD Co. Ltd. (BYDDF). Smaller niche rivals include Nikola Corp. (NKLA).

the Bottom Line

Rivian’s EV maker’s IPO is the largest and most successful IPO in the U.S. since 2014. Rivian went public on Nasdaq in November. 10th, 2021, with the I.P.O. value of $78.00, which raised more than 12 billion dollars. The shares of the Company, which have the ticker symbol “R.I.V.N.”, closed trading in November. 12th, 2021, at $129.95, gave the Company a market value of $127.3 billion.

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