Rivian Files IPO, reports 48,390 Pre Orders

[Ogre]

Amazon-backed EV maker Rivian discloses nearly $1 bln losses in IPO filing
ReutersOctober 1, 20214:28 PM PDTLast Updated 2 hours ago
Oct 1 (Reuters) - Rivian Automotive, backed by Amazon.com Inc (AMZN.O) and Ford (F.N), disclosed losses of nearly $1 billion in the first half of the year, the electric-vehicle maker's U.S. IPO filing showed on Friday.

The company has been investing aggressively in ramping up production of its electric vehicles, including its upscale all-electric R1T pickup truck which was launched last month beating out competition from more established rivals, such as Tesla Inc (TSLA.O), General Motors (GM.N) and Ford.

Rivian had about 48,390 preorders for its R1T pickup trucks and R1S SUVs in the United States and Canada as of last month.

The company is currently pursuing a two-track strategy: building electric delivery vans for Amazon and developing an electric pickup and SUV brand aimed at affluent individuals.

Amazon has ordered 100,000 of Rivian's electric delivery vans as part of the e-commerce giant's broader effort to cut its carbon footprint.

Rivian said on Friday it will list its shares on the Nasdaq under the symbol "RIVN". read more

Founded in 2009 as Mainstream Motors by R. J. Scaringe, the company changed its name to Rivian in 2011. "Rivian" is derived from "Indian River" in Florida, a place Scaringe frequented in a rowboat as a youth.

Scaringe on Friday said the company would put 1% of equity in its environmental program called "Forever" that is aimed at helping address climate change and preserving wildlands and waterways.

Rivian, which confidentially filed paperwork with regulators for an IPO in August, has not yet set terms for its offering. However, Reuters reported in September that it could seek a valuation of nearly $80 billion, raising up to $8 billion in its IPO. read more

For the six months ended June 30, Rivian's net loss widened to $994 million from $377 million a year earlier, the company said in its filing with the U.S. Securities Exchange Commission.

https://www.reuters.com/business/ev-maker-rivian-makes-ipo-filing-public-2021-10-01/

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[Ogre]

So pre-orders are a little higher than I guessed, but not crazy high.

No wonder they've been crazy busy with the promotional blitz, they wanted to crank up the pre-order numbers for their IPO filing.

 

[Deleted member 12457]

Didn't Tesla have this amount of losses working on getting everything going? This is the problem existing car manufacturers won't be able to survive from. New companies can sometime get away with major losses if enough investors think they will eventually succeed. Rivian's 50K pre-orders might be enough to get going but unless they can actually deliver trucks in decent numbers they will fail. The one thing that might allow Rivian to get over the hump is if they can provide a steady stream of vehicles on a monthly basis. If it take them a year to produce 50K trucks, after startup issues, their investors will drop like flies. An IPO will not help them no matter how much money it brings in if they can't produce enough trucks to stay competitive.

I'm hoping they will succeed and be able to drop their price because I'd rather see them succeed than Ford or GM (mainly because I'm tired of having my taxes going to bail them out because they don't know how to get with the program!

 

[PointHope]

Lots of orders for the clown truck.
Watched the Colorado debut on utube, today.
Reviewers all masked like clowns, admiring the silly luggage doors for their roller bags. (couldn't watch it all, too silly)

 

[CyberGus]

Hey, 49k pre-orders per day is pretty impressive.

Oh wait, that’s total orders? Sorry lol

 

[jerhenderson]

So pre-orders are a little higher than I guessed, but not crazy high.

No wonder they've been crazy busy with the promotional blitz, they wanted to crank up the pre-order numbers for their IPO filing.

not much higher.

 

[jerhenderson]

They want a valuation of 80 BILLION for 48 000 SUV's ??? What's the math on that? Each Rivian is ' worth' 1.7 MILLION

 

[jerhenderson]

Didn't Tesla have this amount of losses working on getting everything going? This is the problem existing car manufacturers won't be able to survive from. New companies can sometime get away with major losses if enough investors think they will eventually succeed. Rivian's 50K pre-orders might be enough to get going but unless they can actually deliver trucks in decent numbers they will fail. The one thing that might allow Rivian to get over the hump is if they can provide a steady stream of vehicles on a monthly basis. If it take them a year to produce 50K trucks, after startup issues, their investors will drop like flies. An IPO will not help them no matter how much money it brings in if they can't produce enough trucks to stay competitive.

I'm hoping they will succeed and be able to drop their price because I'd rather see them succeed than Ford or GM (mainly because I'm tired of having my taxes boing to bail them out because they don't know how to get with the program!

At that volume they'll need Amazon vans sales to survive to mass market, or remain niche.

 

[Crissa]

Fifty thousand SUVs and a few hundred thousand large commercial vans.

-Crissa

 

[jerhenderson]

Fifty thousand SUVs and a few hundred thousand large commercial vans.

-Crissa

yes the commercial aspect will be their bread and butter if the Rivian consumer line maintains that lower sales volume.

 

[Deleted member 12457]

yes the commercial aspect will be their bread and butter if the Rivian consumer line maintains that lower sales volume.

So the R-series vehicles will simply be a small volume, specialized camping type truck. Is that the consensus? Rivian makes their money on throwaway Amazon vans but has fun making a couple trucks (several thousand is still only a couple when you think about it) to satisfy investors without really wanting to ramp up to the production level of ICE trucks. This would be like Peterbilt building a non-commercial, light EV truck to go along with their big ones. These could be made at a loss just to get them on the road to advertise their EV semis (https://www.peterbilt.com/trucks/electric-vehicles). Wouldn't be a bad idea.

 

[Mini2nut]

Rivian orders will pickup once they offer a Dual Motor version in 2022. They need to lower the price point to appeal to more buyers.

 

[Sirfun]

Fifty thousand SUVs and a few hundred thousand large commercial vans.

-Crissa

This was from the Bloomberg Article that TruckElectric posted. My take is that Amazon has the commercial van business tied up for the first 4 years, and they are only ordering about 10,000 per year.

The filing revealed new details about Rivian’s pact with Amazon, underscoring how the startup has tied its future to one of its biggest benefactors. The e-commerce giant will have exclusive rights to Rivian’s delivery vehicles for four years after receiving its first one, and it gets right of first refusal to buy the vans for two years after that. Amazon has ordered 100,000 last mile trucks by 2030, with the first 10,000 due this year.

 

[Crissa]

Only 10K due this year. That's not the same as 10/year. Production doesn't start at maximum.

-Crissa

 

[jerhenderson]

Rivian orders will pickup once they offer a Dual Motor version in 2022. They need to lower the price point to appeal to more buyers.

I'm not sure a dual motor appeals to that off road camping trails bushwhacking market.

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