Amazon Increases Investment in Rivian

Amazon's Investment in Rivian Stock

Within Rivian’s S-1 filing for its initial public offering, it was disclosed that “cornerstone investors” had expressed an intention to acquire as much as $5 billion in stock at the IPO price. Amazon was identified as one of these investors, and it appears the e-commerce leader executed a purchase on Friday afternoon.

Recent Stock Acquisition

According to a recent Form 4 filing, Amazon procured approximately $200 million worth of Rivian stock at the IPO price of $78 per share. This transaction involved a total of 2,564,102 shares, closely approximating the intended $200 million investment.

Amazon’s Total Rivian Holdings

Currently, Amazon possesses a total of 158,363,834 shares of Rivian. Based on today’s closing price of $129.95 per share, these holdings are valued at approximately $20,579,380,228.3. The company’s recent acquisition, at $78 per share, has already yielded a profit exceeding $133 million.

Stake Percentage

Amazon’s latest Rivian stock purchase represents 1.6% of its overall stake in the company. This calculation considers prior pre-IPO holdings and warrants that have been converted into Class A shares following the public listing.

Previous calculations regarding Amazon’s ownership in Rivian were inaccurate. A review of the ecommerce giant’s share tally, compared to Rivian’s projected post-IPO share count, indicates a 17.7% ownership. Utilizing Yahoo Finance’s current share count for Rivian, Amazon’s stake is approximately 16.2%. Both figures are significant, though more conservative than initially estimated.

Rivian’s IPO Performance

Rivian’s IPO has been remarkably successful, generating substantial capital for the EV manufacturer and significantly increasing its market capitalization. As of the week’s close, Yahoo Finance reports Rivian’s value exceeding $127 billion.

Valuation Metrics

Considering Rivian’s production of only 12 vehicles in the third quarter, the company’s valuation currently stands at roughly $10 billion per unit produced. While this ratio is expected to decrease in future quarters, it highlights the extent to which Rivian’s valuation is based on anticipated future performance rather than historical results.

Rivian’s future success is heavily reliant on scaling production and achieving projected revenue targets.