EV Startup Rivian Prepares for Its IPO
Amazon-Backed Rivian Seeks a $60 Billion Valuation
Rivian Automotive, an electric vehicle startup backed by Amazon (AMZN), is planning to go public next week. It will trade on the Nasdaq under the ticker “RIVN.” It is a busy year for IPOs. So far this year, companies making their public debut in the US have already raised over $268 billion. The Rivian deal has been one of the most highly anticipated yet.
The Rise of EVs
Rivian has posted significant losses, and until recently it was not generating revenue. But this does not seem to be dampening Wall Street’s enthusiasm. Many investors are eager to put money into the growing EV industry however they can.
Around the world, sales of EVs more than doubled between this past September and September 2020. EVs currently account for about 9% of total vehicles sold. As lawmakers and consumers become more conscious about curbing emissions from traditional vehicles, demand for EVs is expected to continue rising.
Enough Investor Demand to Go Around
Rivian is joining a bevy of other EV companies on the stock market. The Swedish car company Volvo (VLVLY), which has shared plans to transition to exclusively making EVs over the next decade, made its debut last week. Lucid (LCID) went public via a merger with an SPAC over the summer.
Meanwhile, Tesla (TSLA), a more established player in the EV market, recently saw its valuation surpass $1 trillion, becoming the sixth company ever to achieve this milestone. Though the EV market is crowded, it seems that at least for now there is enough investor interest to go around.
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