Big-Money Backers Fill the Tank Ahead of Rivian Automotive IPO

Here’s a red-hot initial public offering (IPO) stock for your watch list. If everything goes as planned, then any day now, you should be able to trade Rivian (NASDAQ:RIVN) on the Nasdaq exchange. So, B.Riley (NASDAQ:BRPM) stock could be a major ground-floor opportunity.

The back of a silver Rivian (RIVN) pick-up truck.

Source: Miro Vrlik Photography / Shutterstock.com

Interestingly, it’s coming to you through a regular, old-fashioned IPO rather than via a special purpose acquisition company (SPAC) merger. That might surprise you, since so many electric vehicle (EV) businesses are going public through SPACs nowadays.

Now, some folks might complain that there are too many EV companies on the market already. That’s a valid concern, but Rivian’s not like all the others.

For one thing, Rivian’s “adventure vehicles” could be game changers in the electric pickup and SUV markets. Besides, the company found a pair of backers with a truckload of financial clout.

Getting Ready for RIVN Stock

Here’s what we know (or at least, think we know) about the RIVN stock debut so far.

The New York Times cited a Securities and Exchange Commission (SEC) filing indicating that Rivian aims to sell 135 million Class A common shares, at a price between $57 and $62 per share. With that, the automaker should be able to raise up to $8.4 billion in proceeds.

Now, here’s a story you’ve probably heard with other EV stocks. If you choose to invest in RIVN stock, you’re essentially buying into a vision for the future. That’s because, Rivian “hasn’t actually delivered any vehicles yet except within the company,” said Samuel O’Brient, InvestorPlace financial news writer.

So, don’t start grabbing shares out of the gate unless you have a clear picture of what sets Rivian apart from the other pre-delivery EV makers.

Adventurous Forever

While RIVN stock will be new to the public market, Rivian has actually been in business for a while.

Founded in 2009, Rivian aims to “Keep the world adventurous forever,” according to the company’s IPO filing (via the New York Times). In that vein, Rivian specializes in EVs which have a rugged but sleek look, and could be driven off-road.

This makes the company unique and interesting, as Rivian could help introduce the EV revolution to consumers in rural markets, who may have been hesitant to ditch combustion-engine vehicles.

In 2018, Rivian introduced what the company describes as the world’s first “Electric Adventure Vehicles.” These are the R1T, an all-electric pickup, and the R1S, an all-electric SUV. It features a battery system which allows roughly 200 miles of range to be added in 30 minutes of charging.

Moreover, the R1T and R1S will include a suite of bells and whistles, including “camera, lidar, radar, ultrasonic and a high precision GPS coupled with high definition maps.”

Funding from Two Heavy Hitters

As I teased earlier, Rivian’s financial backers include two well-known names with plenty of capital. One of them is Amazon (NASDAQ:AMZN). That company initiated an equity investment round in Rivian, to the tune of $700 million.

“We’re inspired by Rivian’s vision for the future of electric transportation… We’re thrilled to invest in such an innovative company,” commented Jeff Wilke, Amazon CEO Worldwide Consumer.

Apparently, Amazon has also entered a fleet order in which Rivian is expected to deliver 100,000 electric delivery van (EDV) units by the end of 2025.

The other big-name backer is Ford Motor Co. (NYSE:F), which reportedly offered an equity investment in Rivian totaling $500 million.

Not only that, but Ford and Rivian have allegedly agreed to work together to develop a battery-electric vehicle for Ford’s EV portfolio using Rivian’s skateboard platform. Plus, it was announced that following Ford’s investment, Joe Hinrichs, Ford’s president of automotive, would join Rivian’s board.

The Bottom Line

Rivian isn’t the first pre-delivery EV company to go public, and there will undoubtedly be others in the future. Thankfully, though, Rivian isn’t just a clone of its competitors. The company’s vehicles are feature-rich and offer a sense of adventure. All in all, RIVN stock will be speculative, as all new EV stocks must be.

Still, just like the vehicles themselves, an investment in Rivian could fulfill your urge for adventure.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarketsFinom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. 


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