Rivian reveals $ 1 billion loss in first stock market filing

Rivian, an electric vehicle company promising to bring us an all-electric truck, just released its first initial public offering documents, and it’s quite striking: the company lost $ 1 billion in the first half of the year. This year, Automotive News reports.

Here is a little more from the article:

The Irvine, Calif., Based startup in a filing Friday with the US Securities and Exchange Commission said the size of the offering was $ 100 million, a placeholder that will change when the terms of the stock sale are set.

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The company’s IPO plans come as electric vehicle makers expand, aiming for a greater share of the growing market. With $ 10.5 billion raised from backers including Amazon and Ford Motor Co., an Illinois-based factory, and thousands of reservation holders for its R1T truck and R1S SUV, Rivian is among the most serious.U.S. competitors line up to take on electric vehicle leader Tesla Inc.

As you can imagine, that pact with Amazon that pumped money into Rivian in exchange for Amazon getting exclusive rights to Rivian’s delivery vehicles for four years actually did a lot to keep the lead. de Rivian out of the water.

There is a clause in this pact, however, that means Amazon still gets some flexibility. He can continue to associate other electric car manufacturers if it deems it necessary.

As part of its IPO filing, Rivian also had to disclose its pre-orders. Currently, there have been 48,390 deposits of $ 1,000 to be purchased, i.e. the R1T or model R1S.

That said, Rivian’s losses of $ 994 million in the first half of 2021 come close to the $ 1.02 billion lost by Rivian in 2020. As of June 30 of this year, the company had around $ 3.7 billion. dollars in cash to fund its growth. , so Rivian is not very much in debt yet. But until Rivian actually starts selling vehicles, we’re going to continue to see these massive losses.