Rivian Prices Its IPO, Valuing the Electric – Vehicle Maker at Nearly $70 Billion

What Is Rivian All About?

An automotive company that was founded in 2009 makes electric vehicles including electrical vans and cars. Currently, Rivian is planning to build a pickup truck and an electric sport utility vehicle along with the charging networks throughout the U.S. 

What Is IPO?

The full form of abbreviation I.P.O. is Initial Public Offering and it is a phenomenon in which a private company can become public by selling its stocks to the public market. 

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About Rivian and Its IPO Prices

Today (i.e., November 10, 2021) in the afternoon the news broke out that the famous electric vehicle manufacturing company “Rivian” opens to the world at a stock worth of the corporate at essentially seventy billion dollars, an uncommon amount that features the thought on Wall Road that the quickly developing electric vehicle market stays to be a massive space.

On Tuesday Rivian disclosed that it is increasing its shares up to seventy-eight billion dollars. According to some financial calculations, Rivian is going to add an increment of twelve billion dollars in its profit which would leave behind Uber that earned a profit of eight billion dollars in 2019.

From Wednesday the inventory of Rivian would start to purchase and sell on the Nasdaq alternate beneath the ticker RIVN. 

Rivian prices

Rivian and the Other Electric Vehicle Producers

The market capitalization of Rivian would function like that of Ford when it reached seventy billion dollars. The shares of the stock market have fluctuated again when Elon Musk announced that Tesla could raise its inventory.

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Rivian has a thirst to earn more capital and maximize its profits. Previously, before this I.P.O. Rivian earned ten billion dollars from investors including Amazon and Ford. It is predicted that it will boost its profit to many billion dollars as it is recently working on the production of three main automobile categories.

The first one is a pickup truck which could be used for off-roading. Next, an electric sport utility car and a supply van which was a joint venture with Amazon, and it holds a major share in Rivian and has demanded one lakh vans. 

It is claimed by all the electric vehicle manufacturers that the world would soon shift to electric vehicles. Common Motors would stop the production of gasoline-fueled vehicles by 2035.

Moreover, Tesla is already working on the mission to manufacture millions of electric cars by the end of this year and right now has a market capitalization of one billion dollars which is equivalent to the combined market capitalization of some big automotive giants namely G.M., Ford, Toyota Motor, Volkswagen, BMW, and few others also. 

A lot now relies on Rivian whether they would be able to produce the desired number of electric vehicles as Tesla had to face some tough time initially in supplying the demanded quantity of their sedans.

Rivian was able to provide only one hundred and fifty-six pickup trucks known as “R1T” by the deadline of a month and is planning to start delivering its sport utility vehicles known as “R1S” by the following month.

Whilst Rivian also predicted that they would not be able to complete the remaining fifty thousand and four hundred orders by 2023. 

Rivian’s Current Financial Status

Where many other electric vehicle giants have gone public this year, Rivian has also mentioned its huge losses. Rivian had to face a loss of nearly nine hundred and ninety-four million dollars in the starting six months of this year. Customers should be prepared to bear the losses for some time.

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The van contract with Amazon should on a basic level safe a delicate revenue source. It is expected that Rivian could benefit and earn a profit because of its effective run in the automotive sector.

“Rivian’s pickup and sport utility vehicles are targeted at well-to-do patrons who like the outside. Hold the world adventurous endlessly,” Rivian’s I.P.O. prospectus proclaims. 

No doubt that Rivian would face formidable competitors, along with recognized automakers that have a lot of expertise with huge numbers of manufacturing. In the upcoming year, Ford is expected to start producing an electrical model of its F-150 pickup truck.

The top-selling car in the USA. G.M. is predicted to quickly start promoting an electrical GMC Hummer in each truck and S.U.V. variations and is engaged on a Chevrolet Silverado electrical pickup.

On the I.P.O. value, the market capitalization and shares of Rivian would be increased, at around seventy-five billion dollars. If the bankers of Rivian encourage additional shares they have available to fulfill the demand along with a few inventories issued as compensation to workers, it also is included within the budget estimations. 

Hence, if Rivian keeps working smartly and efficiently it would not only be able to fulfill the remaining demanded orders by 2023 but could also come in line with the market capitalization of other electric vehicle giants and could become capable of giving tough competition to the rest. As it is said that hard work always pays off!


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