Rivian IPO: Amazon’s most popular electric car company is now more important than Ford or GM

Rivian appeared in the group Wednesday, the main signal IPO in the United States since 2014. Manufacturer and manufacturer of SUVs purchased its product at $ 78 a share and earned $ 12 billion, which the company plans to spend on promoting the production and production of more automotive models. While the price was valued at Rivian for about $ 70 billion, the car dealership market rose sharply. $ 90 billion, when the stock went on sale for about $ 107 a share on its first day.

Rivian filed for the first public offering in August. The 12-year-old company, backed by Amazon and known as one of Tesla’s most dangerous vehicles, is now one of the world’s most important, most important vehicles. billions more than Ford or GM – although, as of October, only 156 vehicles have been delivered. Rivian’s first car, carrying $ 73,000, began shipping in September, and a second model, a seven-seater SUV for $ 75,500, is set to be released next year.

Rivian’s time is good in some ways. This summer, President Joe Biden issued a law requiring electric vehicles to account for half of all new sales in the United States. by 2030, and a growing number of historical car manufacturers are committed to changing the design to electric vehicles in the next twenty years.

But as the world continues to fight the epidemic, Rivian faces other challenges. The decline in semiconductors has led to delays and suspensions of the automotive industry. There is no more of it many production sites available all over the US, leaving some EV buyers worried that the water will run out.

“It’s very difficult that so much human infrastructure exists,” Jeremy Michalek, professor of architecture and human resources at Carnegie Mellon, told Recode in August. “Perhaps the first thing I do is make sure there are enough speed chargers at the roadblock so you can take your car wherever you want to go.”

Like Tesla, Rivian is selling home chargers and creating a payment network around the world. The company plans to have 10,000 stations by the end of 2023, most of which will be located in remote areas. Also as Tesla has done, Rivian is taking a straightforward AI approach to his vehicles. Rivian has invested heavily in her hands-on, independent career a list of items called Driver +, which sounds like Tesla’s Autopilot. In the lawsuit, Tesla accused Rivian of stealing his business secrets later recruiting his former employees.

But the biggest difference between Rivian and Tesla is the type of electric cars the two companies are selling. Established in 2009 and underground for many years, Rivian announced in 2018 that its first models will be a freight car and a custom-designed SUV. driving outside. That’s a big difference from Tesla, which focuses on selling cars and crossovers. (Tesla announced its first car, the Cybertruck, in 2019, but referrals have been made. was delayed until 2022.)

Rivian is also a delight to business clients, including those who support her. Having participated in the first two economies, Amazon last year volunteered to buy 100,000 electric vehicles from Rivian by 2030. Former Amazon CEO Jeff Bezos and three other riders at Blue Origin for the first time are people who even boarded. boarded a Rivian SUV to the start page.

Ford, with its plans to launch the electric version of its famous F-150 car next year, has also sold more than half a billion at the start of an electric car.

Rivian’s IPO crisis time

There is no doubt that Biden enjoys electric vehicles. The Biden government has already begun suspending electricity all federal vehicles, SUVs, and vehicles, more than 600,000 vehicles. Meanwhile, the White House and congressional Democrats are pushing for the Post Service to take place to purchase 165,000 electric vehicles. The the most recent type Biden’s plans also include $ 7.5 billion to build an electric car network. (Tesla CEO Elon Musk too began to unlock the Tesla Supercharger electric cars from other manufacturers.)

But while EVs are the fastest growing in the world, the US is experiencing slower growth than China or Europe. Last year, the sale of electric vehicles around the world has grown by 41 percent, according to the International Energy Agency, a national regulatory authority. While the sale of electric cars in the US follows that of China and Europe, the sale of hybrid cars is growing, a sign that more consumers can heat up electric cars down the line.

Mu a a recent Pew study, 7 percent of Americans say they own an electric or hybrid car, and 39 percent say they can buy one. The high cost of EV shares it is certainly a helpful thing to low interest rates in the US. But the cost of batteries, who are the most expensive part of electric vehicles, is falling, so Americans can see cheap EVs in the future.

The effects of the epidemic have also plagued the automotive industry. Rivian, who was originally due to release his car in July, twice stopped the cars. Late last month, founder Rivian and CEO RJ Scaringe told customers who had pre-ordered the cars that Covid-19 disrupted everything from “building sites, installing equipment, to automotive components (especially semiconductors).” The same chip shortages forced Tesla to do so also record his vehicle number, and experts are concerned that the lack of semiconductors could slow down the production of the new Ford F-150 electric car.

However, if Tesla’s success escalates with any sign, Rivian stops to find eager, foreign customers who want an EV off the road. Considering the current challenges, the company relies heavily on standing next to Tesla as well as the number of automaker manufacturers looking for a share of the EV market. GM will start supplying the electric version of its GMC Hummer car in the past at the end of the year. And the Jeep is waiting to release its Wrangler electronic version by 2023. President Biden has already given someone a test drive.

Update, November 10, 2:15 pm: The article was adapted to include Rivian’s stories.