With credible backers like Ford and BlackRock, Rivian has Amazon buying 100,000 of its vans. Still, the electric-truck maker’s $80 billion IPO valuation allows no room for error for a new manufacturer driving into a competitive market, AntonyMCurrie says.
, will buy 100,000 of its vans. Now Chief Executive RJ Scaringe has filed confidentially for an initial public offering. There’s just one snag: an eye-watering potential valuation of $80 billion.
Apply the same multiple to Rivian, and it implies sales that year of $33 billion. That’s possible – just. Scaringe’s firm currently operates one factory with capacity to produce 300,000 vehicles a year and is scouting for a second to churn out perhaps another 200,000. At an average price of $75,000, just above what it’s currently charging for orders, at full capacity Rivian would bring in around $37 billion.
To get close to either target, Rivian has no room for delays or the kind of problems that created what Musk called “production hell” at TeslaMusk, at least, had few competitors. Scaringe doesn’t have that luxury. Ford, for example, already has 120,000 reservations for its electric F-150 truck. Tesla has a pickup truck in the pipeline, too. Rivian's IPO investors could be risking an electric shock.- Rivian Automotive on Aug. 27 said that it has confidentially filed paperwork with the U.S.
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