July 16, 2024

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Amazon-backed EV Startup Aims For Valuation Above $50 Bn

Rivian Automotive, an Amazon-backed electric vehicle startup, said Monday it is targeting a valuation of more than $50 billion.

The California-based company will price shares between $57 and $62, raising up to $9.1 billion at the midpoint price and all company stock at about $52.5 billion, according to a securities filing.

US business media said Rivian could go public on Wall Street as soon as next week.

Rivian has raised more than $10 billion in funding since its founding in 2009, including from Amazon, which has pledged to purchase 100,000 electric delivery vans from the startup.

Rivian aims for a valuation above $50 billion when it goes public, according to a securites filing Rivian aims for a valuation above $50 billion when it goes public, according to a securites filing Photo: GETTY IMAGES NORTH AMERICA / David Becker

The Amazon order constitutes “the largest order of EVs ever” and “supporting a path to carbon neutral deliveries” for the giant retailer, Rivian said in the filing.

Amazon disclosed last week a stake of $3.8 billion in preferable stock of Rivian, according to a securities filing.

In addition to the Amazon delivery vehicles, Rivian is producing electric trucks and sport utility vehicles for consumers with prices starting from around $70,000.

The news from Rivian comes as governments around the globe, including in the United States, make the development of electric cars a priority, and as the global auto sector accelerates EV production.

The offering also follows Elon Musk’s company Tesla last week hitting a market valuation of more than $1 trillion.

Copyright AFP. All rights reserved.

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