Electric truck maker Rivian is moving toward an initial public offering (IPO) supported by early backer Amazon, which has a 20% stake, according to multiple reports.
Other investors include Ford, backing Rivian with $820 million and holding a stake in excess of 5%. Ford, however, recently vacated its seat on Rivian’s board, while Amazon Senior Vice President of Worldwide Corporate and Business Development Peter Krawiec is now on Rivian’s board.
Launched in 2009, Rivian is seen as a possible Tesla competitor, raising more than $10.5 billion from investors to date at a valuation of roughly $80 billion.
Despite its estimated valuation, Rivian indicated in a recent securities filing that it could have a quarterly loss hitting $1.28 billion. Amazon invested more than $1.3 billion in the California-based firm, and has orders placed for electric delivery vans through 2030, with the first 10,000 coming in before 2021 closes.
The move is pivotal to keeping with the tech giant’s strategy to reduce greenhouse gas emissions.
Stymied by COVID-related production and supply chain issues, the manufacturing of Rivian’s debut pickup truck initially launched in August, with the first deliveries rolling out in September. The production of its sports-utility vehicle, the R1S, has been pushed back, with no word on when the vehicle’s production will start.
With Amazon as a major customer, the company has been allocating its resources to that end, instead of focusing on manufacturing vehicles for individuals.
Rivian’s truck, van and SUV are all being manufactured at the company’s facility in Normal, Illinois. Both a second factory in Fort Worth, Texas, and a European facility to manufacture vans are being considered, with the Texas factory expected to cost around $5 billion, Bloomberg reported.