Wednesday, October 27, 2021

Rivian details $1 billion loss, Amazon deal in IPO filing

By Crystal Tse and Ed Ludlow | bloomberg

Rivian Automotive, an Irvine-based developer of electric pickups backed by Amazon.com, disclosed a net loss of nearly $1 billion in the first half of the year in its initial public offering paperwork.

In a filing Friday with the US Securities and Exchange Commission, the startup listed the size of the offering as $100 million, a placeholder that will change when the terms of the share sale are determined.

Bloomberg reported in August that Rivian was seeking a listing valued at about $80 billion, when the company announced that it had confidentially filed for an IPO.

The company’s IPO plans come as electric vehicle makers are vying for a bigger segment of the growing market. With $10.5 billion raised from backers including Amazon and Ford Motor Co., an established factory in Illinois, and thousands of reservation holders for its R1T truck and R1S sport utility vehicle, Rivian is the most likely to take on the electric-vehicle leader. One of the serious competitors. Tesla.

related: Why Southern California is a New EV Mecca with Rivian, Lordstown and Karma in Irvine

The filing revealed new details about Rivian’s agreement with Amazon, outlining how the startup has aligned its future with one of its biggest beneficiaries. The e-commerce giant will have an exclusive right to Rivian’s delivery vehicles for four years after it receives its first, and then for two years before it receives the right of refusal to purchase the van. Amazon has ordered 100,000 last mile trucks by 2030, with the first 10,000 this year.

But the filing shows that Amazon’s logistics arm isn’t obligated to buy any electric delivery vehicles from Rivian — and it may still work with any other potential automotive partners.

“While the EDV Agreement provides that we will be reimbursed for certain development costs, it does not include any minimum purchase requirement or otherwise prohibit Logistics from developing or collaborating with vehicles or purchasing similar vehicles from third parties,” Said it.

Between truck beds, frunks, storage bins, gear tunnels, and more, the R1T offers 68 cubic feet of storage. Photographer: Hannah Elliott / Bloomberg

Rivian also revealed how many of its SUVs and trucks have been pre-ordered. Potential customers have put down a $48,390 refundable deposit of $1,000 for non-binding rights to purchase the R1T and R1S models.

$3.7 billion war chest

According to the filing, Rivian had a net loss of $994 million in the first six months of 2021, compared to a loss of $377 million a year earlier. The company generates minimal revenue from initial sales of its R1T, commercial pickup trucks, vehicles and does not generate any revenue from sales of other products. It had about $3.7 billion in cash and cash equivalents as of June 30 to fund its development.

Other investors in the company include T. Rowe Price Group Inc., Global Oryx Company and Mannheim Investments, as shown in the filing.

“Rivian exists to create products and services that help our planet transition to carbon neutral energy and transportation,” wrote founder and CEO Robert Scaring in a letter to potential investors. “I hope you will join our journey to help drive the future of transportation.”

The startup revealed that as of this week, it operated six service centers in four states, including California, Illinois and New York, as well as 24/7 service support centers and 11 mobile service vehicles in Michigan. Rivian had a network of 169 dedicated charging stations across the country, 24 of which are so-called fast-charging sites.

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The offering was led by Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co. More than 20 banks are listed on the cover page of its prospectus. The company plans to trade its shares on the Nasdaq under the symbol RIVN.

Rivian employs approximately 8,000 people globally. Its main factory in Normal, Illinois, a former Mitsubishi Motors Corp. plant, has just begun production on the company’s first consumer models.

Separately, Rivian said Friday that it has established a philanthropic foundation called Forever to address climate change and is committed to investing 1% of its equity in the nonprofit.

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