Back in February, Ford Authority reported that Ford-backed 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 was scaled back to its original expected value of $50 billion earlier this month. Now, just a few days later, that number has jumped back up to $65 billion, according to Reuters.
Previously, the company planned to sell 135 million shares at around $62 each, but a new targeted stock price of $72-$74 boosted that valuation considerably. This increase comes as Wall Street’s larger IPO investors are showing more confidence in Rivian, which recently began production of its first vehicle – the R1T, and has been investing heavily in ramping up production after receiving 55,400 pre-orders for the pickup and its R1S SUV, as well as an initial order of 100,000 delivery vans by Amazon.
If Rivian can hit its target, it would also make the company’s IPO the largest by an EV automaker in history, eclipsing the $2 billion raised by China’s XPeng and the $260 million Tesla garnered in 2010. 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, giving it a five percent stake.
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 ramping up production. However, the company was able to record revenue over a three-month period that ended in September.