The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. In the full-size EV SUV space, Tesla led the way with its Model X. Rivian also faces competition from China-based EV makers like NIO Inc. (NIO) and BYD Auto, a subsidiary of BYD Co. Ltd. (BYDDF). For the best Barrons.com experience, please update to a modern browser. "Rivian and Its IPO: What to Know About the EV Startup." The company reportedly gave two reasons: supply-chain issues and service-infrastructure availability. An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Bloomberg reported on July 11 that Rivian is planning hundreds of job cuts, citing unnamed sources. "Rivian Stock Rises 29% in Trading Debut. Later this year it plans to begin delivering a three-row, seven-passenger SUV named the R1S. Finance. The stock closed the day trading at $100.73 per share, giving the company a valuation of approximately $86 billion. However, Shlisky says Rivian's plans to enter lower-priced categories and geographies may present a brand problem. Furthermore, it stated that high oil prices have resulted in"significant increases in freight charges and raw material costs.". And if these manufacturers or suppliers become unwilling or unable to provide an adequate supply of semiconductor chips, Rivian says it would not be able to quickly find alternative sources. It ended Q1 with $16.971 billion in cash and cash equivalents. Rivian hiked the price of its R1T electric pickup around 17% in March, which will increase the base cost to about $78.975 from $67,500. That said, Jonas said in a March 25 note that while fiscal 2022 is a year of challenges related to ramping production, he is confident in Rivian's strategy, including the entire value chain from "up to the mine down to the delivery of an Amazonpackage to you front door or a back-country excursion.". "Several traditional automakers and EV new entrants have announced plans to launch EV pickups in the 2021 through 2024 time frame," Goldman Sachs told clients in April 2021. The shares began trading on the Nasdaq under the symbol "RIVN" at an opening price of $106.75. Rivian's shares finished trading at a price of $129.95 on Nov. 12, 2021. On June 27, Rivian announced the open of three EV fast-charging sites in California and Colorado. The $5 billion project is slated to break ground in the coming months. "Rivian prices IPO at $78 a share, valuing electric vehicle company at $66.5 billion." Ownership data provided by Refinitiv and Estimates data provided by FactSet. But the Snap crash highlights this big 3:08 PM ET *Advertising Disclosure: RBD partners with Credible which offers rate comparisons on many loan products, including mortgage refinances and student loans. The company has been able to finance its operations primarily through the sale of securities and from borrowing. Rivian Automotive Inc. "Form 424(b)(4) dated Nov. 9, 2021," Page 9. ItsAccumulation/Distribution Rating is B, indicating a moderate amount of buying of its shares among institutional investors. Accessed Nov. 14, 2021. The offering raised nearly $12 billion in financing to fuel growth. But its RS Rating is just 12 out of a best-possible 99. Until RIVN stock has some sort of track record following the Rivian IPO, investors won't have a clear buy point. Institutional investors hold around 45% of its stock.

The first Level 3 DC fast charging site opened in Salida, Colo. Accessed Nov. 13, 2021. Some who had an April-May delivery date were told they'd have to wait until April-May, other until October-December. At that price, the company's total market cap was $127.3 billion, nearly double the valuation estimated based on the initial offering price. The move represents about 5% of Rivian's workforce of more than 14,000 employees. Accessed Nov. 14, 2021. Rivian's direct-to-customer model allows it to manage all sales, deliveries and service operations in-house without relying on a franchised dealership network or other third parties. The EV maker said that it plans to use the proceeds from its IPO to finance growth and for general corporate purposes, including research and development, sales and general administrative expenses, and capital expenditures. Accessed Nov. 13, 2021. The report said the layoffs would not affect manufacturing workers. Rivian warned in the complaint that if the dispute is not resolved it may be forced to shut down the commercial van program. It delivered its first 11 R1Ts in September 2021, having produced a total of 12 during the quarter. Rivian reported in a July 6 SEC filing that it produced 4,401 vehicles at in Q2, a 72% jump from the previous quarter. Accessed Nov. 13, 2021. Rivian now has a market cap of $30.55 billion. CNBC.

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Jonas adds thatthe current share price significantly underestimates the strategic value of Rivian's relationship with Amazon. Those states include California, Florida, Arizona and Illinois. Rivian Automotive Inc. "Form 424(b)(4) dated Nov. 9, 2021," Page 75. Accessed Nov. 13, 2021. GM Stock A Buy? investors have been dealing with a lot lately. These Are The Best EV Stocks To Buy And Watch Now. General Motors will follow up with a Silverado EV as well as a GMC electric pickup for 2023. See the full disclosure, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to email a link to a friend (Opens in new window). Rivian makes its vehicles at its plant in Normal, Ill. "Electric-Truck Maker Rivian Raises $2.65 Billion Ahead of First Vehicle Launch." To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. Scaringe said the price increases are due to rising costs of the components and materials that go into building its vehicles. Totalcash and cash equivalentson the companys balance sheet at the end of the June were $3.7 billion. "In addition, plans to take the brand global are logical, in our view; that said, pickup trucks and large SUVs are less-popular in global markets than in the U.S.". It had sales of $95 million. In the commercial market, Rivian has a deal to make 100,000 electric delivery vans for Amazon.com. They redefined the company's strategy, refocusing their efforts on the truck, SUV, and crossover segments of the automobile market. Scaringe started his company with the goal of building an efficient sports car. Until the quarterly period ended Sept. 30, 2021, the company had not produced or delivered any vehicles and thus had not generated substantial revenue. He teaches macroeconomics at St. Stephen's University. Rivian Automotive Inc. "Form 424(b)(4) dated Nov. 9, 2021," Page 86. Rivian is also scrapping the 5-seat R1S electric SUV. Several months ago, Ford vacated its seat on Rivian's board of directors. These include white papers, government data, original reporting, and interviews with industry experts. The plant has a production capacity of 150,000 units annually. Lucid Motors (LCID) more than doubled in the first four months after going public in July 2021, as it began deliveries. But production has been slow, while its R1S SUV has largely been pushed out to spring 2022. The embattled EV maker's stock got a boost from its Q2 production and delivery news on July 6 and the launch of delivery vans for Amazon on July 20. Prior to the IPO, the company's last private funding round took place on July 23, 2021. Was there a Rivian Directed Share Program? And the global chip shortage continues to be a problem. The company sold 153 million shares, raising nearly $12 billion. That's more than the market capitalization of Ford Motor Co. (F), one of Rivian's major financial backers. Tesla led the market rally Thursday, with a few more stocks setting up. Accessed Nov. 14, 2021. It has a targeted range of 300 miles vs. the Rivian's truck's 314-mile range per charge. Rivian went public under the ticker "RIVN" on Nov. 10, 2021 at an initial offering price of $78.00. However, in a note to clients Jan. 26, 2022, Jonas said: "The road to ramping production will be choppy, but we expect largely due to supply rather than demand.". Investors.com will undergo scheduled maintenance tonight from 10:00 PM to 2:00 AM ET and some features may be unavailable. A Guide to Initial Public Offerings (IPOs). Rivian says it expects todeliver at least 10 vehicles in December 2021. A graduate of the Massachusetts Institute of Technology, he is the company's chief executive officer (CEO) and chairman of the board of directors. The size of the IPO and the rapid rise in Rivian's stock price reflects investors' excitement about the EV market, especially for startups seeking to develop EVs that compete with traditional automakers. Rivian prices IPO at $78 a share, valuing electric vehicle company at $66.5 billion, Rivian and Its IPO: What to Know About the EV Startup, Rivian Stock Rises 29% in Trading Debut. Tesla filed a lawsuit against Rivian and a number of former Tesla/current Rivian employees in July 2020 in California alleging trade secrets misappropriations. Stellantis will also make electric delivery vans for Amazon. Rivian says it expects todeliver at least 10 vehicles in December 2021. Rivian has not yet named who will lead its B2C business. Rivian's IPO raised nearly $12 billion, making it the largest IPO in the U.S. since 2014. An IPO lockup, which bars some early investors from selling stock for a period, ends May 9. Is General Motors Really Worth Less Than Rivian? Its Worth More Than Some Auto Makers." The broader U.S. equity market, as measured by the S&P 500, was basically flat over the same period. The company's shares, which trade under the ticker symbol "RIVN", closed trading on Nov. 12, 2021, at a price of $129.95, giving the company a market valuation of $127.3 billion. That sounds scary, but it might turn out better than investors expect. RBD may be compensated when a link is clicked. It has four chargers that can provide more than 200 kilowatts of power. Amazon said on Feb. 2, 2022, that it had a roughly 18% stake in Rivian. JPMorgan has an $85 price target for Rivian stock and an overweight rating. Rivian Automotive Inc. "Form 424(b)(4) dated Nov. 9, 2021," Page 22. The company is prioritizing production of electric vans for Amazon. Accessed Nov. 14, 2021.

Ford, which has been focusing on expanding sales of EVs and has a nearly 12% stake in Rivian, saw its shares fall about 1% over the roughly three days of trading. Amazon also has a large stake in Rivian at nearly 19%. As many as 153 million shares were sold at an initial offering price of $78.00, valuing the company at $66.5 billion. But GM is coming out with the luxury Cadillac Lyriq this spring. Will Rivian Stock be a Motley Fool Stock Advisor Recommendation? Website Terms/Privacy Policy/Full Disclaimer, Pricing and Order Date November 9th (after the bell/evening), Your assets under management at the broker. "Rivian Shares Surge in Largest U.S. IPO Since 2014." Accessed Nov. 13, 2021. *Real-time prices by Nasdaq Last Sale. The company estimates that it generated $0 to $1 million in sales and a net loss of between $1.2-$1.3 billion in the quarter ended Sept. 30, 2021. The price of the R1S SUV will jump about 20%, bringing the new base price to about $84,000 from $70,000. LCID stock came public via a SPAC merger. Accessed Nov. 14, 2021. It delivered 4,467 vehicles, a 264% surge from Q1. Investopedia requires writers to use primary sources to support their work. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. The company expects competition in the EV market to intensify due to a greater regulatory push for alternative fuel vehicles and other factors. Rivian reported negative free cash flow of $1.452 billion in Q1 vs. $802 million a year earlier. Use code IBD. FactSet had expected a loss of $1.41 a share on sales of $132.7 million. In Q1, Rivian produced 2,553 vehicles, including a mix of the Rivian R1T pickup truck, R1S SUV and commercial vans headed to its main customer, Amazon. Rivian Automotive Inc. "Form 424(b)(4) dated Nov. 9, 2021," Page 2 (PDF). But by 2012, he and the Rivian team concluded that their initial strategy would not meet their goals, and they changed course. Amazon says the vans will be used in several cities in the U.S. He received his bachelor's degree in interdisciplinary studies fromSt. Stephen's Universityand his master's degree in economics at The New School for Social Research. At its first shareholder meeting on June 6, Rivian said ithas $17 billion of cash on hand as of March 31, 2022, which it hopes can support the 2025 launch and ramp of its R2 vehicle platform. Rivian also plans to launch an electric delivery van (EDV) for business customers. The Big Three refers to the three largest U.S. car manufacturers: General Motors, Chrysler, and Ford. An error has occurred, please try again later. Frank Klein became COO.

The RIVN IPO raised $11.9 billion, giving Rivian an initial valuation of roughly $77 billion. It went public on the Nasdaq on Nov. 10, 2021 at an IPO price of $78.00, raising nearly $12 billion.

However, Rivian cautioned that battery supply would be challenging over the coming decade, "with the need for battery production capacity in the world to expand by 20 times during this time.". The Rivian R1S will have an opportunity to make inroads. It delivered 1,227 vehicles in the first quarter. Morgan Stanley's Adam Jonas initiated Rivian coverage in December 2021, with an outperform rating and a price target of $147. Rivian is based in California and was founded in 2009 by Robert J. Scaringe. On June 11, Rivian Forums reported some Rivian SUV reservation holders had received an email indicating more delayed deliveries. Hot EV Startup Rivian Plans Second Factory Ahead Of IPO, Want To Get Quick Profits And Avoid Big Losses? Accessed Nov. 14, 2021. Ford's stock sales have pushed RIVN shares even lower, as the embattled EV startup missed quarterly earnings. GM and Ford have begun shipping out EV delivery vans to customers. Rivian said that it expects to generate most of its revenue in the near term from sales of vehicles, accessories, and regulatory credits. Special webinar sale: Join IBD Digital and get 2 months of access for $12thats over $57 off! The company plans to eventually offer less-expensive models. The offers that appear in this table are from partnerships from which Investopedia receives compensation. 2000-2022 Investor's Business Daily, LLC. Wedbush analyst Dan Ives had some sobering words about Rivian. Additionally, Charly Mwangi, the head of manufacturing engineering, is leaving Rivian. But several states are challenging Rivian's DTC model, citing dealership laws. This content is not provided by Credible or any of the Providers on the Credible website. The price increases apply to existing orders. Shlisky said Rivian's vehicles are targeted to high-end customers for now. Jonas said Rivian's stock decline is a "reality check" of the impact of bottlenecks and other growing pains.

When you visit this site, it may store or retrieve information on your browser, mostly in the form of cookies. This copy is for your personal, non-commercial use only. Rivian is also redrawing its organizational chart. Rivian Automotive Inc. "Form 424(b)(4) dated Nov. 9, 2021," Page 10. The EV startup had a monster IPO, however shares have fallen well below their IPO price recently, amid an overall market downturn. Management also said it expects the "very sizable increases in recent months in the cost of key metals, including lithium, nickel, aluminum, and cobalt" to persist. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. We also reference original research from other reputable publishers where appropriate. "Rivian Automotive Inc. (RIVN): Statistics." The company produces and has begun delivery of its first-generation consumer vehicle, which is a two-row, five-passenger pickup truck named the R1T. Ford's move is not entirely a surprise. CEO Scaringe largely confirmed these details in a July 15 company meeting. Bottom line: Rivian stock is not yet a buy. Motor vehicle sales represent the number of domestically produced units of cars, SUVs, minivans, and light trucks that are sold. Crunchbase Inc. "Rivian: Financials." Copyright 2022 Dow Jones & Company, Inc. All Rights Reserved. Shlisky initiated coverage with an Underperform rating and a price target of $24. In March, several auto dealership groups in Illinois sued both Rivian and Lucid over their DTC sales model, which they say is illegal. RIVN stock has an RS Rating of just 12 out of a best-possible 99. "We believe Rivian from a core engineering and design perspective along with the Amazon commercial relationship has potential to be a major EV stalwart over the next decade," he said. Gradually, it will then begin to generate more substantial revenue from offering value-added services spanning the lifecycle of its vehicles, which will deepen its relationship with customers. Rivian Automotive Inc. "Form 424(b)(4) dated Nov. 9, 2021," Page 153. That means Ford's stake has fallen to just under 10%, or 86.9 million shares. Itplans to deliver the EDVs to Amazon by 2025. Shares of EV-maker Tesla, the most valuable automobile company in the world, fell nearly 3% during the same period, between the debut of Rivian's shares and close of trading on Friday. The company intends to use net proceeds from the Rivian IPO for working capital, to fund growth and for other general corporate purposes. "We continue to prioritize deliveries in locations where service infrastructure is in place so that we can provide the full ownership experience to Rivian owners from day one.". Yahoo! But Rivian's reliance on one big customer is risky. Join WSJ and watch techs biggest players break techs biggest news. Authors may own the stocks they discuss. Jonas believes Rivian's joint ventures tosecure a greater supply of cells and enablingmaterials to make battery packs in-house is what sets it apart from legacy automakers that are expanding their EV offerings. The seats are for Rivian's commercial vans bound for Amazon, its key client. Shares soared to 179.47 on Nov. 16, 2021, but then sold off sharply over the following weeks and months. The company reiterated it's on track to meet its production goal of 25,000 EVs for 2022, but that's half its original estimate of 50,000. "We do not have long-term agreements with all of our semiconductor chip manufacturers and suppliers," management said. Accessed Nov. 15, 2021. RIVN stock fell 25% in the two days after the price hikes were announced. BREAKING: Tech Futures Fall As Snap, Intuitive Surgical Dive On Earnings. Barron's.

Did Rivian Offer IPO Shares to Retail Investors? Accessed Nov. 14, 2021. You can learn more about the standards we follow in producing accurate, unbiased content in our. Rivian Automotive

Rivian's totalbook value, the difference between its assets and liabilities, was $5.5 billion as of June 30, 2021. Rivian Automotive Inc. (RIVN) designs and manufactures electric vehicles (EVs) and accessories and offers related services. Rivian Automotive Inc. "Form 424(b)(4) dated Nov. 9, 2021," Page 1 (PDF). Rivian says it doesn't expect to be profitable for the foreseeable future. However, Amazon is also looking elsewhere to electrify its fleet, On Jan. 5, 2022, Amazon and Stellantis (STLA) said they're are partnering to develop vehicles with Amazon software in the dashboards. Copyright 2022 Dow Jones & Company, Inc. All Rights Reserved. Rivian lost $1.77 per sharein Q1 vs. a loss of $4.10 a year ago. Accessed Nov. 14, 2021. Davidson analyst Michael Shlisky said in a May 31 note to clients that like most EV startups, there have been "bumps in the road" as Rivian ramps up production. Rivian Automotive Inc. "Form 424(b)(4) dated Nov. 9, 2021," Page 96. The stock was up more than 21% from its initial opening price to the close of trading on Nov. 12, 2021, three trading days after the IPO.