Rivian is aiming to take advantage of a growing
appetite among consumers and investors for
electric vehicles. It joins what’s becoming a
long line of companies, both new and old,
trying to peel away market share from Tesla.
Tesla has largely dominated the electric vehicle
market for years, amassing a market value of
more than $1 trillion along the way. So far this
year, Tesla has sold around 627,300 vehicles.
Rivian priced the offering of 153 million shares
at $78, giving it proceeds of nearly $12 billion.
The company said it will use the money to
ramp up production of its trucks, vans
and SUVs.
Craig Irwin, an analyst who covers electric
vehicle and EV charging companies for Roth
Capital, says that even with more companies
entering the EV market, there is still plenty of
room for newcomers.
“EVs are inevitable, and it’s a good thing for
the markets to have another credible EV
competitor come public,” Roth said. “Rivian’s
IPO marks a point of incremental maturation
for the industry and shows that billions in
capital is available for credible players.”
Rivian has a contract with Amazon to build
100,000 electric delivery vans at its factory,
a former Mitsubishi plant in Normal, Illinois.
Ford Motor Co. holds a 13% stake and has said
the companies would work jointly to develop
electric vehicles.
As of Oct. 31, Rivian had about 55,400 vehicle
preorders in the U.S. and Canada. Those orders
are placed with a $1,000 deposit that can be
canceled and refunded.