April 15, 2024


Unlimited Technology

Amazon backed EV startup, Rivian Automotive aims for valuation above US$50 billion

Given the trend that is steadily shifting towards electric vehicles all the major players in the industry are speeding up to gain an edge in the market.
Amazon backed electric vehicle startup, Rivian Automotive shared earlier this week that it is targeting a valuation of more than US$50 billion.

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

US business media said Rivian Automotive could go public on Wall Street as soon as next week. Rivian has raised more than US$10 billion in funding since the company was founded in 2009, including from Amazon, which has pledged to purchase 100,000 electric delivery vans from the startup.

It'll hurt, but Amazon shouldn't have problems paying the fine after its $100 billion quarter.

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 US$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 US$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 US$1 trillion.

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