{"id":10404,"date":"2021-11-09T17:55:11","date_gmt":"2021-11-09T14:55:11","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=10404"},"modified":"2023-06-29T09:24:22","modified_gmt":"2023-06-29T06:24:22","slug":"rivian-automotive-inc-ipo-will-they-repeat-success-of-tesla","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2021\/11\/09\/rivian-automotive-inc-ipo-will-they-repeat-success-of-tesla\/","title":{"rendered":"Rivian Automotive, Inc. IPO: Will They Repeat Success of Tesla?"},"content":{"rendered":"\n

Since the very birth of the car industry, there has been rivalry between cars with an electric engine and internal combustion engine. In a fair competition, the second option won. Engineers from leading construction agencies competed over the most powerful and then efficient motors.<\/p>\n\n\n\n

However, by the middle of the 20th century, research in this sphere reached a dead end. Engineers started thinking about returning to the concept of electric cars, and in 2010, Tesla<\/a> carried out an IPO<\/a>. The company only produced and sold electric cars. Other electric car makers followed, and the trend is not to stop anytime soon.<\/p>\n\n\n\n

\"Rivian<\/figure>\n\n\n\n

One more representative of the sphere, an electric car maker Rivian Automotive is planning an IPO in NASDAQ on November 10th, 2021. The shares of the company will start trading on the next day under the ticker RIVN.<\/p>\n\n\n\n

The placement of Rivian Automotive is going to become a largest one this year, so it would be useful to get into the details of it business and assess its investing attractiveness.<\/p>\n\n\n\n

<\/span><\/a>Business of Rivian Automotive, Inc.<\/span><\/h2>\n\n\n\n

Rivian Automotive was founded in 2009. Key investors were Amazon<\/a>, Manheim Investments, Global Oryx Company Limited, and Ford Motor Company. Jeff Bezos’s company invested in the startup about 700 million USD, while Ford became the second large investor (investing about 500 million USD). Rivian employs about 6,000 people. Director-general is Robert J. Scaringe.<\/p>\n\n\n\n

\"Basics<\/a>
Basics of business of Rivian Automotive, Inc.<\/em><\/figcaption><\/figure>\n\n\n\n

Rivian Automotive designed two models of 4x4 – an R1T pickup (for 67,500 USD) and an R1S crossover (for 70,000 USD), with power reserve of 480 km. Production will be based in Illinois, on a plant previously owned by Mitsubishi. During the IPO, the company plans to attract money that will later be spent for a second plant in Texas.<\/p>\n\n\n\n

\"Rivian<\/a><\/figure>\n\n\n\n

The largest customer of the company is an IT giant Amazon that wants 100,000 vans until 2025. The first party of 700-1,000 cars is to be supplied until the end of 2021. By 2027, the issuer plans to increase the number of cars made annually to 200,000. The number of employees will have increased to 1,500 people.<\/p>\n\n\n\n

\"Business<\/a>
Business model of Rivian Automotive, Inc.<\/em><\/figcaption><\/figure>\n\n\n\n

The issuer plans to sell cars directly to clients and on subscription. Note that since the beginning of the year, Rivian sold about 150 R1T pickups. Sales volumes now fully depend on the only large customer – Amazon. However, in the case of a success, bright perspectives open for Rivian. Let us see more details of this.<\/p>\n\n\n\n

<\/span><\/a>Market and rivals of Rivian Automotive, Inc.<\/span><\/h2>\n\n\n\n

According to the research made by Rivian itself, the target market is still forming. Sales are planned in the USA, Canada, and West Europe. For now, this market is assessed for 1.65 trillion USD. In these calculations, not only sold cars are calculated but also the cost of after-sale service. Rivian is constructing a vertical integrated ecosystem of its models to increase the average check.<\/p>\n\n\n\n

\"Volume<\/a>
Volume of the target market of Rivian Automotive, Inc.<\/em><\/figcaption><\/figure>\n\n\n\n

The issuer will have to fight with several large rivals:<\/p>\n\n\n\n