Rivian Automotive, a firm that develops electric cars, including Amazon’s commercial delivery vans, filed for an IPO. The company intends to list under the ticker name “RIVN” on the Nasdaq. According to its filings, in the first 6 months of 2021, it reported a net loss valued at of $994 million on zero income. The company’s net loss in 2020 was $1.02 billion.
“We are a development phase company and have not produced meaningful income to date,” the company claimed in its application. In September 2021, vehicle manufacture and deliveries began.” Rivian beat GM, Tesla, and Ford to market with the R1T electric truck, which has gotten rave reviews so far. According to the application, the company aims to release the R1S, a seven-passenger SUV, in December.
Rivian was founded in 2009 by RJ Scaringe, who holds a Ph.D. from the Sloan Automotive Laboratory of the Massachusetts Institute of Technology. As of the close of June, the corporation had 6,274 workers and was situated in Irvine, California. In Normal, Illinois, it runs a vehicle assembly plant. Each of Amazon and Ford owns upwards of 5% of the firm. Rivian’s board includes Peter Krawiec, who serves as the Amazon’s senior vice president in charge of the worldwide corporate as well as business development.
For the foreseeable future, Rivian’s commercial vehicle sector will be heavily reliant on Amazon. According to the business, Amazon has exclusive rights to buy electric delivery cars from Rivian for a minimum of 4 years, with the right of first refusal after that. However, both companies have the option to back out of the arrangement if specific conditions are met. Rivian may withdraw and require Amazon to reimburse some expenditures if Amazon does not purchase at least 10,000 automobiles over the span of 2 consecutive calendar years.
Rivian is producing three different sizes of electric cars for Amazon: 500, 700, as well as 900 cubic feet. The smaller 2 are set to debut in December of this year and early 2022, respectively. The larger one will be released at a later date.
Rivian, like Tesla, is now a non-unionized automaker. The corporation acknowledged in its filing that this state could change and have an impact on labor expenditures. Rivian is also vertically integrated in the same way that Tesla is. This means it sells Rivian electric cars directly to consumers instead of franchised dealerships, performs its vehicle servicing and maintenance, and invests in a charging station network for Rivian owners.
Rivian presently maintains six service facilities in Washington, California, Illinois, and New York, as well as 11 mobile service cars that can drive to the client’s home and perform some repairs, according to the company’s filing. Rivian has set up 20 new service centers across the country.