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Did you miss the Tesla (NYSE: TSLA) initial public offering (IPO) that offered shares of TSLA at its IPO price of just $17 per share in 2010? If you’re thinking of investing in the electric vehicle (EV) sector, then popular electric pickup and SUV maker Rivian Automotive Inc. has filed to go public, with its debut taking place on November 9, 2021. Keep reading to find out more about the Rivian and how to buy stocks in companies when they go public.
Rivian Financial History
Rivian Automotive was founded in 2009 by R.J. Scaringe with the purpose of developing products, vehicles and services with a focus on sustainable transportation. The company currently has several manufacturing locations that include Plymouth, Michigan; Carson, San Jose; Irvine, California; and Normal, Illinois. The company also has an advanced manufacturing office in Surrey, England.
The 2.6 million square foot Normal, Illinois, facility has undergone a massive $750 million renovation to begin the manufacture of battery packs, in addition to battery-powered trucks, SUVs and vans that include the company’s R1S SUVs and R1T pickup trucks.
The Rivian vehicle line is set to go on sale in 2022 and will have a base price of $68,000 to $72,500. These vehicles will be semi-autonomous and deliver a driving range of 400 miles per charge. Currently, prospective buyers can serve a place in line to purchase either the R1T or the R1S.
While the company has been in operation since 2009, major funding began with a corporate investment round of $700 million led by Amazon (NASDAQ: AMZN) in February 2019. The company had previously received debt financing of $250,000 in 2011, $1 million in 2012 and $200 million in 2018.
Since the Amazon corporate equity financing round, the company has received an additional corporate investment of $500 million in April 2019 from the Ford Motor Company (NYSE: F), which brought Rivian’s valuation to $4.5 billion. The next corporate financing round was in September 2019 and involved an investment of $350 million by privately-held Cox Enterprises subsidiary, Cox Automotive.
By December 2019, the company had raised another $1.3 billion in private equity from 4 major sources. These were Ford, T. Rowe Price Group Inc. (NASDAQ: TROW), Blackrock (NYSE: BLK) and Amazon.
Rivian raised $2.5 billion from a group of 7 investors in July 2020 and another $2.7 billion from 8 investors in January 2021. Both investment groups were led by T. Rowe Price and included other major names like Blackrock, Soros Fund Management LLC., the Fidelity Management and Research Company and Coatue Management LLC.
Many analysts and automotive industry professionals consider Rivian a significant rival to Tesla in the EV market. Also, given the impressive list of its high-profile investors, the potential for Rivian’s IPO could be significant to anyone fortunate enough to buy the shares on the first day of trading.
Amazon, for example, is one of the company’s initial investors and it currently has Rivian delivery vans in use. It also expects the delivery of 10,000 Rivian vans by 2022 and 100,000 by 2030.
As of the January 19 investment round, Rivian had an estimated net worth of $27.6 billion, although its market valuation could potentially rise to $50 billion after going public. This would make Rivian more valuable than Ford, which has a market capitalization of roughly $46.5 billion. Keep in mind that Ford has accumulated a $500 million stake in Rivian.
While no guarantees exist for making money on newly issued stock, Rivian’s business does show considerable potential for future growth, and many investors have seen their IPO stock turn into a profitable investment over time. Rivian debuted on November 10, 2021, trading at $78 per share. As of December 8, 2021, the stock had risen to over $121 per share, and it is trending up. However, the market is fickle, and that figure fell as low as $34 in June of 2022.
How to Buy Rivian Stock
If you already know how to buy stock, you can press on. If not, you can use this list of simple steps to decide which stocks to buy, how many shares you need and how to complete the order.
- Pick a brokerage.
You can trade through some of the largest online stock trading brokers: Charles Schwab, E*TRADE, Fidelity and TD Ameritrade, although each broker has different requirements for participation.
If you’re unsure of which broker to choose, check out Benzinga’s best brokers.
- Decide how many shares you want.
Once you have met all of the broker’s requirements and have answered the relevant questionnaires, you can state the number of shares you wish to purchase within the limit of the funds in your account.
- Choose your order type.
You can purchase as many shares as you please with a simple market order. You might also set up limit orders that buy or dump the stock at certain prices.
- Execute your trade.
Execute your trade and check your account dashboard. Your trade should be reflected instantly, and you can make your next investment at any time with the funds remaining in your account.
Best Online Stock Brokers
Below are some of the best brokers to get you started.
Is Rivian Stock\ for You?
While you might not have gotten Rivian shares at the IPO price, you can still buy the shares on the open market. Remember, there will be dips in any stock of which you can take advantage. When you find these entry points, you will gain access to a burgeoning industry that will only become more important as Americans turn toward renewable energy sources and conservation.
Now that Rivian is post-IPO, you should keep an eye on the IPO calendar and the news to learn about more offerings coming to the market.
Frequently Asked Questions
Does Amazon own Rivian?
No, Amazon does not own the majority of Rivian. However, they purchased $200 million of their stock when they IPO’d giving them 17.7% ownership.
Can I order a Rivian yet?
Rivian’s are available for pre order, however most of them are expected to be delivered in the summer and fall of 2022.