Ford Authority

Ford Backed Rivian Planning $50 Billion IPO, Lower Than Expected

Back in February, Ford Authority reported that EV automaker Rivian was aiming to go public as soon as September with a valuation of $50 billion. Then, in May, the company announced that it was eyeing a $70 billion dollar valuation for its initial public offering (IPO). That number jumped up to $80 billion in August but is now scaling back to its original expected value of $50 billion, according to a new report from Bloomberg.

The automaker says that it expects to sell 135 million shares at somewhere around $57-$62 each, raising $8.4 billion in its IPO that could give it a value of around $53 billion. Adding in employee stock options and restricted stock units would raise that valuation to around $60 billion, but either way it represents a significant jump from the company’s $27.6 billion valuation back in January.

That number would also make Rivian’s IPO the largest by an EV automaker in history, eclipsing the $2 billion raised by China’s XPeng and the $260 million Tesla accumulated back in 2010. However, Rivian has already raised $10.5 billion through multiple fundraising rounds, with financial backing from Amazon, Ford, and a number of other established companies. Ford has invested in the company multiple times, including an initial investment of $500 million back in 2019 and an additional $902 million in Q1 of this year.

Rivian’s IPO filings revealed that the automaker lost $994 million in the first half of 2021 – up from $377 million a year ago – which it attributed to costs associated with the production of the R1T pickup that began a few weeks ago. The company also revealed that it has received 48,390 preorders for its R1T and R1S SUV so far, on top of the 100,000 delivery vans that online retail giant Amazon previously ordered.

Meanwhile, Ford and Rivian’s relationship is reportedly “going great,” even though a planned Lincoln SUV built on the latter’s Skateboard platform was canceled last year. A future Ford EV riding on that platform is still in the works, however.

We’ll have much more on Rivian soon, so be sure and subscribe to Ford Authority for more Rivian news and ongoing Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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