We will discuss Jeff Bezos’ investment in Rivian, the EV startup rumored to be supplying Amazon with electric vehicles. We will also explore the company’s IPO plans and its recent investment round, at least the ones that have been made public.
Regardless of Bezos’ investment, Rivian is on the way to becoming a unicorn in the shipping and freight market over the next decade.
There are few figures as iconic as Jeff Bezos in the business world. As the CEO of Amazon, he’s become a household name, and his decision to invest in electronic vehicles has made him one of the most influential investors in the world.
Amazon’s investment strategy
Amazon’s investment strategy is strategic and data-driven. It means that its bets are wise and well thought out. Their recent investment in Rivian is no exception. Rivian is an electric vehicle company (EV) that has been making waves in Silicon Valley, so it is wise for Amazon to invest in it.
Amazon is known for making big bets on companies with growth potential and can help them grow their market share. Rivian fits both criteria, which makes Amazon’s decision to acquire this company an excellent one for both parties involved. Rivian will see exponential growth because of Amazon’s backing; meanwhile, Amazon will have access to cutting-edge technology in the electric vehicle space because of this investment.
Rivian raised $700 million in a funding round led by Amazon in February 2019. The investment is the largest by Amazon and Jeff Bezos so far into an electric vehicle startup. The news came just days after Rivian unveiled its R1T pickup truck and R1S SUV, with production slated to begin in 2020.
Rivian has performed well since the funding round in 2019. Rivian has raised a total of $10.5 billion since then. In July 2021, Rivian closed a $2.5 billion private funding round led by Amazon’s Climate Pledge Fund, D1 Capital Partners, Ford Motor Company, and funds and accounts advised by T. Rowe Price Associates, Inc. This funding round will help Rivian scale new vehicle programs, expand its domestic facility footprint, and fuel international product rollout. Rivian has also announced that they will go public with an IPO. The company has been working on developing electric vehicles and has already started production of their R1T and R1S models.
Amazon’s strategic approach to investment decisions in Rivian
Amazon has been making strategic investments in the auto industry for several years, intending to develop a robust platform to help consumers make informed decisions quickly and efficiently about their purchases. The company invested $1 billion in Rivian, a startup electric vehicle company, on May 15th. It is Amazon’s first significant investment in an automotive company and follows several smaller ones made over the past few years.
The investment marks a significant step in Amazon’s efforts to offer an online marketplace where consumers can buy cars and other automotive products. In addition to providing customers with information about vehicles and dealerships, the marketplace will allow them to research different makes and models before purchasing one.
Amazon will benefit from gaining access to its technology platform by investing in Rivian, including autonomous driving capabilities. It could be used by other companies interested in offering ride-sharing services similar to Uber or Lyft (which are already available through its Alexa voice assistant).
How much did Jeff Bezos invest in Rivian?
Amazon has an enormous stake in Rivian and has already made plans to buy up to 100,000 electric vehicles, including custom delivery vans. Rivian revealed in a recent legal filing that Amazon owns at least 10% of its stock. Rivian also reported that Ford owns at least 10% of the company. A review of the company’s S-1 filings will reveal more information about the relationship between the two companies.
Amazon has invested in Rivian, an electric vehicle (EV) manufacturer.
Rivian has now partnered with Amazon. The company planned to launch a long-range all-electric SUV in 2020 and a pickup truck in 2021.
The company was founded by RJ Scaringe, who previously co-founded Tesla Motors competitor Fisker Automotive, which filed for bankruptcy protection back in 2013 after it sadly ran out of money.
Jeff Bezos led the $700 million investment round.
Rivian, a startup in the electric vehicle space, has been making waves lately. The company raised $700 million in funding — led by Amazon CEO Jeff Bezos — and announced plans to release an electric pickup truck by 2021.
The company reportedly received hundreds of applications from auto industry veterans after announcing the job openings on LinkedIn last month. Rivian is looking for people with expertise in powertrain development, batteries, motors, software, controls, and manufacturing engineering. Rivian plans to hire up to 1,000 employees over the next few years.
Rivian is an electric vehicle manufacturer that is rumored to be building vehicles for Amazon.
Rivian has been in the news lately because it’s rumored to be building vehicles exclusively for Amazon. As part of Amazon’s ongoing efforts to deliver goods as quickly and efficiently as possible, Amazon has reportedly ordered thousands of Rivian R1Ts (a pickup truck with a 300-mile range and 400 horsepower) and R1S SUVs.
The Rivian deal is intriguing because it shows how new players like Tesla are partnering with legacy automakers to meet their ambitious production goals—and also because it suggests that electric cars will play an immense role than we might have expected in our future transportation system.
Is Rivian IPO a reliable investment?
Rivian is an electric vehicle startup that might be a good investment. If it gets the funding it needs, the company could become the next Tesla. But we suggest caution as you should be careful when investing in an IPO because you can lose money (up to all of your investment) if things don’t go as planned. Even with Jeff Bezos backing the deal, not every decision and investment he makes is a winner. There are a lot of forces beyond the control of Bezos, especially the supply chain issue which was caused by the COVID-19 worldwide shutdown in 2020-2021.
If you are thinking of investing in Rivian’s IPO, here are some questions to ask yourself:
- Will Rivian’s electric cars be successful?
- What does this mean for me as an investor?
What is the IPO price for Rivian?
The IPO price for Rivian shares is set to be $78 per share, making the company worth more than $66.5 billion. Rivian Automotive expects to raise $11.9 billion from the IPO. Currently, the company is valued at $64.5 billion. However, Rivian has plans to raise a further $12 billion once it becomes a publicly-traded company. As a result, its market cap will reach more than $70 billion. It will likely be worth over $77 billion if it is valued on a fully diluted basis.
Amazon’s investment in Rivian is an intriguing move. While electric vehicles are expensive, they can also be more fuel-efficient, thus saving money in the long run. Rivian is not yet profitable but will be able to raise enough funds to stay afloat and grow its business. After weighing your options, you may feel that this investment could be a good and solid option if you are interested in investing in EV startups like Rivian. We will have to wait and see how it pans out!
Also see: Amazon's Secret Royalty Program
Amazon is Rivian's largest shareholder and has a 17% stake in the company with a $700m investment Source. The two companies are in talks to end the exclusive deal they signed together in 2019, as Rivian wants to sell its EV vans and trucks to other customers.