Rivian’s $ 77 billion IPO is the latest sign the electric vehicle industry is ready to take off

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Move over, Tesla. There is a darling new electric vehicle in the public market.

Rivian, the electric truck maker based in Irvine, Calif., Went public Wednesday morning in an IPO that raised $ 11.9 billion and values ​​the company at $ 77 billion. It was the largest IPO since e-commerce company Alibaba in 2014.

The company, which receives funding from Ford and Amazon, launched a fully electric pickup truck in September. Rivian plans to launch an SUV by the end of the year, as well as a delivery truck in conjunction with Amazon, according to The the Wall Street newspaper.

Like Tesla a few years ago, however, Rivian’s valuation doesn’t represent his actual output. The company lost $ 2 billion between January 2020 and June 2021, according to the Newspaper. Rivian plans to deliver around 1,000 vehicles this year, compared to Ford’s 4.2 billion, which is valued at around $ 80 billion.

RJ Scaringe, a mechanical engineer who received his doctorate from the Massachusetts Institute of Technology, founded Rivian in 2009. The startup spent nine years in stealth mode, during which it had no signage on its various facilities.

“We decided, given all the twists and turns and challenges, to be very calm for those first few years,” said Scaringe. Inc. when it launched in 2018. “We said,” Let’s wait until we’re ready to show the world that we’ve actually arranged all of these pieces. “And all of these pieces are in place now.”

Rivian occupies a rapidly growing space. Ford last month announced an F-150 electric pickup truck that will launch in 2022. GM announced earlier this year that it is developing a line of electric delivery trucks. Yet the Newspaper reports that electric vehicles only accounted for 3.6% of auto sales in October, so the opportunities are vast.

And the industry could soon see a further boost. The Build Back Better plan currently being debated by Congress includes a $ 12,500 tax credit for the purchase of electric vehicles.

Rivian has 9,500 employees worldwide, including about 3,000 at its only manufacturing facility, a converted Mitsubishi plant in rural Illinois.


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