Daily Management Review

Amazon-backed rival of Tesla plans $50bn-worth IPO


Electric van developer Rivian is about to launch one of its biggest IPOs this year. The company expects investors to value it at least $50 billion, almost double its current value. Ford and Amazon have already invested in the company, described as one of Tesla's most prominent potential competitors.

Richard Truesdell
Richard Truesdell
Rivian Automotive, the maker of electric SUVs and pickup trucks that Amazon and Ford Motor have invested in, is planning an IPO with a valuation of $50 billion or more, informed sources told Bloomberg. 

Rivian plans to float in September 2021, but the deadline could still move to the end of the year or even 2022, according to the agency's sources. In addition, the potential value of the startup could also change, the sources said. Rivian itself declined to comment. 

Rivian's IPO could be one of the largest offerings of the year and one of the most notable listings by an electric car maker since Tesla went public in 2010, Bloomberg noted. Tesla raised about $226 million in its IPO and was valued at $1.6 billion. 

Rivian is now one of Elon Musk's most prominent potential competitors, the agency points out. The startup has raised more than $8bn from investors including Amazon (invested about $700m as part of the pool) and Ford ($500m). In January, Rivian raised another $2.65bn and was valued at $27.6bn. The fortune of the startup's founder is estimated by Forbes at $1bn, as of 10 February.

source: bloomberg.com