Rivian electric vehicle maker raises $ 11.9 billion for its Wall Street debut

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Rivian, an American automaker specializing in electric pickup trucks, sport utility vehicles, and vans, announced Tuesday that it had raised $ 11.9 billion (about Rs. 88,250 crores) on its Wall Street debut Has.

With support from Amazon and Detroit automaker Ford, Rivian set the IPO price at $ 78 (around Rs 5,800) per share, according to a press release, and will issue 153 million new shares on Wednesday, up from 135 million originally planned due to high demand from Investors.

This equates to a valuation of $ 67.9 billion (approximately Rs 5.04.072 billion) when excluding stock options and other convertible stocks.

The amount is well above what the company expected in early November when it suggested a range of between $ 57 (about Rs 4,200) and $ 62 (about Rs 4,600) per share.

Although the start-up has just taken its first vehicles off the production line, it’s worth almost as much as Ford, which is worth $ 80 billion (approx. 6,31,132 crore) valuation from General Motors, which gives it a lively start the Nasdaq with the ticker symbol RIVN guaranteed.

It announced its intention to go public in August and shipped its first pickup truck, the R1T, in September.

At the end of October, it had an order backlog of 55,400 R1Ts and R1Ss due for delivery by the end of 2023. The prices for the electric trucks and sport utility vehicles start at around 70,000 US dollars (approx. 51.98 lakh).

Rivian also plans to deliver 100,000 vans to Amazon by 2030. The e-commerce giant holds a $ 3.8 billion (roughly Rs.28,219 billion) stake in Rivian’s preferred stock.

The company capitalizes on investor enthusiasm for the electric vehicle sector, where star performer Tesla recently surpassed market capitalization of $ 1 trillion.

The next Tesla? Rivian was founded in 2009 by Robert Scaringe, a car enthusiast who, after graduating from college, wanted to focus on less polluting modes of transport than the traditional automobile.

After initially considering developing a sports car, he switched to larger vehicles in 2012.

The company’s backers often consider it the new Tesla, but Edmund’s Executive Director of Insights Jessica Caldwell said the comparison wasn’t exactly warranted.

While Tesla launched its first car “when no one else was really interested in electric vehicles,” Rivian is “launching in a more saturated market,” Caldwell told AFP.

“You won’t surprise anyone,” she added.

Ford has announced a $ 30 billion investment in electric vehicle production to position itself to lead the United States’ move away from climate-damaging fossil fuels

The company announced it is building four new electric vehicle and battery manufacturing plants that will create 11,000 new jobs by 2025, and Caldwell noted that it will unveil a new, cheaper electric pickup model, the F150, in the coming months Lightning.

Start-ups like Faraday and Fisker are also developing their own electric SUVs.

However, given the tremendous success of the Elon Musk-controlled Tesla, Caldwell acknowledged that dealers can justify their enthusiasm for the newest electric vehicle maker on Wall Street.

“All investors want to be part of the next company that could have as much value as Tesla, and some people think Rivian is that company,” she said.

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