Rivian (RIVN) IPO priced at $78/share, valuing EV company at $66.5 billion

Tesla (TSLA) shares may be taking a dump today, but there is more EV news in the form of Rivian's IPO pricing. We have all the details here.

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Capping off another busy day of financial news, Rivian has announced the pricing for their IPO. The electric vehicle company, which has large private shareholders like Ford and Amazon, has priced its IPO at $78/share. The purported initial share price offering indicates a market capitalization of $66.5 billion. That's a lot of hamburgers.

Rivian has filed their Form S-1 prospectus with the SEC. Shares will trade on the NASDAQ stock market exchange under the stock symbol RIVN. Rivian's $66.5 billion valuation is very close to that of stodgier auto companies Ford ($79 billion) and General Motors ($85 billion). This is especially amusing as Rivian disclosed in their prospectus that they expect to lose $1.28 billion in Q3 2021 on revenue that is expected to come in somewhere between $1 million and zero dollars. Those interested in the stock should keep an eye on our guide for when the Rivian (RIVN) IPO starts trading.

Rivian really hasn't started shipping many vehicles, and it appears that investors are going to have to give management the benefit of the doubt that they will ultimately execute on their vision. There is currently a total of 55,400 pre-orders for the company's R1T and R1S EVs. R1S is an SUV that starts at $70,000, while R1T is a pickup truck with an entry price of $67,500. Those orders are expected to be delivered by the end of 2023.

Amazon, which invested over $1.3 billion in Rivian, owned 22.4% or RIVN shares at the time the prospectus was filed. Rivian already has a commitment from Amazon (AMZN) to purchase 100,000 by 2030. Additionally, Ford (F) owned 14.4% of Rivian before the IPO, and it remains to be seen what that company will do with its stake that is now approaching $8 billion. 

Rivian claims its factory in Illinois is capable of producing up to 150,000 vehicles per year, but that may be optimistic give the chip shortages affecting the broader automobile industry this year. Some EV stocks have lost their luster in the past week, with Elon Musk kneecapping Tesla shares with a Twitter poll. Perhaps the timing will be just right for people trying to invest in the next Tesla, but with a $66.5 billion valuation, Rivian is pricing in a lot of future growth.


This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.

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From The Chatty
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    November 9, 2021 7:45 PM

    Captain Business posted a new article, Rivian (RIVN) IPO priced at $78/share, valuing EV company at $66.5 billion

    • reply
      November 9, 2021 7:48 PM

      Damn, 100 million close to 666

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      November 9, 2021 7:50 PM

      Why wouldn’t someone that hasn’t made a single vehicle be worth as much as Ford or GM?Just makes sense.

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        November 9, 2021 8:17 PM

        Because the stock market is completely full of shit and values are made up.

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        November 9, 2021 8:26 PM

        Oh come on, they're in production! At roughly one truck per day.

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        November 10, 2021 10:30 AM

        I remember reading years ago that American auto makers had a huge disadvantage vs the Japanese or the Euro automakers in that every car cost several thousands more because of pension. Each car has a built in cost of workers that aren't even working on the cars anymore.

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          November 10, 2021 10:56 AM

          Inflation to the rescue!!!! Brrrrrrrrrr

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      November 9, 2021 11:49 PM

      I like Rivian more than Tesla.

      All are still owned by shitty billionaires, though.

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      November 10, 2021 4:20 AM

      Coworker preordered one and they let him into the ipo. He got full allocation of 175 shares

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      November 10, 2021 8:11 AM

      My buddy works there and drives/owns one. While I haven't actually driven in it, I've gotten the parking lot tour. Very cool truck, for sure.

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      November 10, 2021 10:22 AM

      I ran across this video of a Rivian truck climbing Hell's Gate in Moab. It's pretty impressive.

      https://www.youtube.com/watch?v=Yeth5v_5dPM

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        November 10, 2021 10:34 AM

        Ah yes the 0.00001 percent of that vehicle’s driving as bragging rights.

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      November 10, 2021 10:32 AM

      Hit 120 lol so stupid

      That said will buy this on the inevitable dip

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