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Rivian Now Sports activities a Market Cap of $77 Billion
Rivian Automotive (RIVN), the electrical car startup which counts Amazon (AMZN) and Ford (F) as backers, raised $11.9 billion in what’s amounting to the most important IPO on an change within the US since 2014.
Traders piled into Rivian on its first day as a public firm, hoping to capitalize as the electrical car market takes off. Tesla (TSLA), a pioneer within the EV market, has seen its share value soar during the last yr. Many traders are betting that Rivian will see comparable success.
Rivian IPO Proceeds Will Be Used to Scale
Proceeds from Rivian’s IPO will likely be used to spice up manufacturing of its EVs and for the event of latest autos. The corporate can even use the money to assemble a brand new manufacturing plant and to get its palms on extra batteries, that are essential for EVs and are in brief provide.
In September Rivian started delivering the R1T, its electrical pickup. By the tip of 2021 the corporate plans to roll out extra EVs together with an SUV dubbed R1S and a supply truck. The latter is being developed together with Amazon, which owns about 19% of Rivian. Ford, which has a 12% stake in Rivian, noticed its $1.2 billion funding surge to a price of $9 billion because of the IPO.
Rivian Joins Different EV IPOs
Rivian joins a rising checklist of EV makers that are going after the luxurious aspect of the market, together with Lucid (LCID), XPeng (XPEV), and Li Auto (LI). All have gone public for the reason that summer time, commanding enormous valuations regardless of a scarcity of earnings. For the reason that begin of final yr by way of June, Rivian has seen losses of $2 billion even because it gears as much as ship roughly 1,000 autos by the tip of this yr.
Rivian is garnering loads of optimistic consideration following its profitable IPO., however the firm does face challenges. Competitors is fierce, provides are laborious to return by, and its bold plan to churn out three fashions this yr may show difficult. Will probably be fascinating to see if investor enthusiasm stays excessive in Rivian’s early days as a public firm.
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