The much anticipated IPO Rivian could happen as early as September, with the departure of the electric truck seeking an valuation of at least $ 50 billion, Bloomberg reported.
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The IPO Rivian’s schedule may change and may even slip into the coming year, but the company has been discussing its plans with bankers, sources told Bloomberg.
Rivian, who has the support of Amazon (AMZN) and Ford (F), raised $ 8 billion in the past two years and is seen as a reliable challenger for Tesla (TSLA).
The Rivian IPO would be one of the most significant since Tesla’s debut in 2010. A financing round in January valued the start of the EV at $ 27.6 billion.
And with a valuation of $ 50 billion or more, Rivian could also be the largest electric vehicle IPO, surpassing Tesla’s $ 1.7 billion market capitalization when its IPO was priced as good as Nio’s (NIO) $ 6.4 billion, Xpeng’s (XPEV) $ 11 billion and Li Auto’s (LI) $ 10 billion.
In the meantime, such a high valuation would also put Rivian above Ford’s market value, which is currently around $ 47 billion.
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Ford’s shares fell 0.5% to 11.87 on Wednesday’s stock market. General Motors (GM) shares fell 3% as the automaker predicted that the chip shortage could wipe out $ 2 billion from 2021 profits. Tesla fell 1.1%.
Rivian plans to sell the R1T electric pickup and the R1S electric SUV. In addition, Rivian plans to put 10,000 Amazon electric vans on the roads by 2022, and 10 times that number by 2024.
While announcing an astonishing fourth-quarter profit on February 4 and increasing investment in electric vehicles, Ford estimated its Rivian gain at $ 900 million. In April 2019, the auto giant invested $ 500 million in Rivian. But a year later, Ford canceled plans for an all-electric SUV using Rivian technology.
A Rivian IPO would also break the recent trend of EV startups, such as Nikola (NKLA), Lordstown Motors (TOUR), Hyliion (HYLN), Fisker (FSR) and Canoe (GOEV) going public through blank check mergers.
Nikola and Lordstown are also developing electric trucks that can compete with Rivian’s, while GM plans to launch its electric Hummer later this year with Tesla’s Cybertruck scheduled for next year.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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