Amazon and Rivian’s business ties got bolstered as the retail giant announced a sizable stake in the electric vehicle maker last Friday, October 29. Amazon disclosed this development in a filing to the US Securities and Exchange Commission.
We find this US stock market-related news educational and worth learning about, so we are sharing it with our readers. We think Rivian Automotive will benefit tremendously from its Amazon connection.
Based on the report posted online by The Economic Times Brand Equity, an online source of media and market research, marketing, and advertising updates, Amazon and Rivian are now more closely enjoined.
This development comes as the former holds equity investments, including Rivian Automotive, Incorporated preferred stock representing about 20-percent ownership interest. Additionally, as of September 30, Amazon’s ownership stake of Rivian features a carrying value of US$3.8 billion, and this figure is up from US$2.7 billion on December 31.
Amazon and Rivian’s relationship also involves the retail giant investing over US$1.3 billion to date in the Irvine, California-headquartered electric vehicle automaker. Earlier in October, Rivian cited in a separate securities filing that it is anticipating conducting its initial public offering or IPO this November.
This information included in the IPO prospectus disclosed new information regarding the strong relationship between Amazon and Rivian. The startup developing electric vehicles, which was founded in 2009, revealed that Amazon possesses some exclusive rights to its electric delivery vehicles for at least four years.
Rivian also relayed that the e-commerce behemoth has the right of first refusal after that date. Amazon and Rivian’s strengthened business linkage includes the former completing its order of 100,000 vehicles by 2030, according to the news posted online by business and markets news outlet CNBC.
Amazon also intends to have 10,000 new electric delivery vehicles from Rivian on the road as early as 2022. Besides Amazon, Ford Motors is among Rivian’s prominent investors.
The Michigan-based automobile manufacturer holds a stake which is over five percent in the electric sport utility vehicle maker. We think Amazon and Rivian’s ties are a mutually beneficial business milestone.
First of all, Amazon will benefit from Rivian Automotive’s electric commercial delivery vans. We also believe that the e-commerce giant can aid Rivian in its stock market debut slated later this year.
We gathered that Rivian is a fledgling automotive technology startup that targets raising between US$5 billion and US$8 billion in its forthcoming IPO. It also seeks a market valuation of about US$80 billion.
Rivian proclaimed that it plans to list on the Nasdaq Stock Market under the ticker symbol “RIVN.” The electric vehicle startup’s pre-initial public offering or IPO investors consist of BlackRock and T. Rowe Price. We think Amazon and Rivian’s relationship can make great things possible, especially in the latter’s IPO plans.