Rivian, an electric vehicle maker promising to bring us an all-electric truck, has just released its first IPO documents, and it’s pretty blatant: the company lost $ 1 billion in the first half of this year. Automotive news reported.
Here is a little more from the article:
The Irvine, California-based startup in a filing on Friday with the US Securities and Exchange Commissionion has listed the size of the offering at $ 100 million, a placeholder that will change as the terms of the stock sale are set.
The company’s IPO plans come as electric vehicle manufacturers ramp up and look for a larger slice of the growing market. With $ 10.5 billion raised by backers like Amazon and Ford Motor Co., an established Illinois factory, and thousands of reservation holders for its R1T truck and R1S SUV, Rivian is among the most reputableUS competitors face electric vehicle operator Tesla Inc.
As you can imagine, that pact with Amazon that injected Rivian money in exchange for Amazon snapping exclusive rights to Rivian’s delivery vehicles for four years actually went a long way towards keeping Rivian’s head afloat.
However, there is a clause in this pact that means that Amazon still gets some flexibility. It can continue to work with miscellaneous Electric car companies should consider this appropriate.
As part of the IPO registration, Rivian also had to disclose his pre-orders. At the moment there were $ 48,390 1,000 deposits to buy into either the R1T or R1S model.
All in all, Rivian’s loss of $ 994 million in the first half of 2021 is approaching the $ 1.02 billion Rivian lost in all of 2020. As of June 30 this year, the company had approximately $ 3.7 billion in cash to fund its growth, so Rivian isn’t that deeply in debt just yet. But until Rivian actually starts selling vehicles, we will continue to see these massive losses.