Wed. Dec 1st, 2021

Shares in Rivian Automotive will go public on Wednesday, and the world should get a better idea of ​​exactly how excited investors are about the electric vehicle market.

Prior to the start of trading, Rivian shares were priced at $ 78, giving the company an estimated market value of $ 66.5 billion. This is a significant figure, as Rivian has so far delivered about 150 of its electric pickups to customers, mostly employees, and lost $ 1 billion in the first six months of this year. The valuation is there at established car manufacturers such as Honda ($ 53 billion) and Ford ($ 80 billion), which sell millions of cars worldwide every year.

Rivian has some high-profile corporate supporters: Ford held a 13 percent stake in Rivian that came into the offering, and Amazon had a 20 percent stake.

Large and small car manufacturers, new and old, are chasing Tesla, which has largely dominated the electric vehicle market for years and has built up a market value of more than $ 1 trillion along the way. So far this year, Tesla has sold about 627,300 vehicles.

Craig Irwin, an analyst covering electric vehicle and EV charging companies for Roth Capital, says even with more companies entering the EV market, there is still plenty of room for newcomers.

“EVs are inevitable, and it’s a good thing for the markets to announce another credible EV competitor,” Roth said. Rivian’s IPO [initial public offering] is a point of increasing maturity for the industry and shows that billions of capital is available for credible players. ”

Rivian collect as much as $ 12 billion by selling 153 million shares, which will be more than $ 8 billion raised Uber in its IPO in 2019. Rivian said he would use the money to increase production of its trucks, vans and SUVs. This is the latest in what is beginning to be a long series of companies that are trying to cut out of Tesla’s dominant market share.

Rivian has a contract with Amazon to build 100,000 electric delivery trucks at its factory, a former Mitsubishi plant in Normal, Illinois in the United States. Ford Motor Co. invested half a billion dollars in Rivian in 2019, saying the companies will work together to develop electric vehicles.

As of Oct. 31, Rivian had about 55,400 vehicle pre-orders in the U.S. and Canada. Those orders are placed with a $ 1,000 deposit that can be canceled and refunded.

Rivian its first vehicle, the R1T electric truck, rolled in September and in December its electric SUV, the R 1 S, introduce. Prices for the truck starts at $ 67,500, while the SUV basic package to $ 75,500 beginning and even steeper with all the add-ons.

Options for vehicles includes a battery upgrade of $ 10 000 in which the ryreeks 505 km (314 miles) to will expand more than 643 km (400 miles). Add a Triple-roof tent $ 2,650 in the account and a veldherwinningstel will receive an additional $ 600 cost.

The company said it plans to produce about 1,200 R1T’e and 25 R1S’e and deliver by the end of 2021 about 1,000 R1T’e and 15 R1S’e.

The R1T will compete with Ford’s F-150 Lightning electric truck, which will be on sale next year. The Lightning has a starting price of $ 40,000, but will be more sold for thousands of dollars when customers add options. General Motors has announced plans for an electric version of the Silverado pickup.

“While the R1T’s advantage is that it’s first to market and is likely to appeal to a Tesla – type buyer, the long-term volume expectations for a $ 70,000+ mid-size truck are not very high,” says Jessica Caldwell from the car website Edmunds in an email.

Research firm LMC Automotive says in 2020, EVs accounted for just over 3 percent of the global automotive market and less than 2 percent of the U.S. automotive market. The group predicts that by 2025, those numbers will skyrocket by about 15 percent and 12 percent, respectively.

Rivian, founded in 2009, says he has $ 426 million in 2019 and lost last year $ 1 billion. It reported that he lost nearly another billion dollars in the first six months of this year. Launched in 2010, Tesla recorded its first annual profit last year.

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