Electric bakkie maker Rivian is reportedly looking at a stock market that will be publicly traded at $ 50 billion later this year.
EV SPAC Frenzy
Over the past few months, there has been a strong trend for electric vehicle companies to become known through reverse merger of SPAC transactions.
Fisker, Arrival, Lion Electric, Lordstown Motors, Proterra, Faraday Future and others have all completed or announced SPAC transactions.
The trend started amid Tesla’s incredible performance in the stock market and other EV companies trying to increase momentum and raise more money.
Although some of the transactions have been criticized due to the fact that several of the businesses have little or no income and / or are not close to production, it has also helped to lead to more money in the transition to electric vehicles.
Rivian goes to the good old road
Rivian is one of the few EV companies that has not jumped off the SPAC wagon.
The main reason is that they have no problem raising money privately.
In February 2019, Rivian received a $ 700 million financing round led by Amazon, and just two months later, Ford invested $ 500 million in the launch of the electric pickup.
The company also added Cox Automotive as an investor in September with a round of $ 350 million. It ends its 2019 with a massive $ 1.3 billion round of funding in December.
In 2020, the company returned to the bank and managed to raise another $ 2.5 billion from existing investors and also T. Rowe Price Associates, a major investor in Tesla.
They started strongly in 2021 with a further round of financing of $ 2.6 billion last month.
Now, Bloomberg reports, Rivian is monitoring an IPO later this year at a valuation of about $ 50 billion:
“Rivian Automotive Inc., the startup of electric vehicles, backed by Amazon.com Inc. and Ford Motor Co., plans to go public in September at a valuation of about $ 50 billion and maybe more. , according to people familiar with the matter. “
Unlike the aforementioned companies, Rivian is going to do the traditional exchange process instead of a SPAC agreement.
With the first deliveries scheduled for June, the carmaker would wait until it had an income before going public.
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