Rivian IPO Filing: What You Need to Know

Rivian's Public Filing and Financial Overview

Rivian, an emerging electric vehicle manufacturer, initiated deliveries of its R1T pickup truck in September and has now submitted its S-1 filing to become a publicly traded entity in the United States.

Details of the S-1 Filing

The S-1 document, filed with the U.S. Securities and Exchange Commission on Friday, currently lacks specific details regarding the terms of the offering.

This filing, highly anticipated throughout the year, reveals a company experiencing substantial cash expenditure as it undertakes the complex process of designing, developing, manufacturing, and distributing electric vehicles. The S-1 document, which details financial data, potential risks, and growth opportunities, also offers insights into the company’s expansion plans, its collaboration with Amazon, and projected spending.

Financial Performance and Losses

Rivian reported a net loss of $426 million in 2019. This loss more than doubled to $1 billion as the company focused on constructing its factory in Normal, Illinois, preparing for the production of the R1T pickup and R1S SUV, and increasing its workforce.

As of June 30th, Rivian employed 6,274 individuals, according to its S-1 filing. Recent reports to TechCrunch indicate that the company now employs over 8,000 people across facilities located in Arizona, California, Michigan, Illinois, Vancouver (Canada), and the UK.

The company’s financial losses increased as it neared the production phase of the R1T and R1S models. A net loss of $994 million was recorded in the first half of 2021, significantly exceeding the $377 million net loss reported during the same period in 2020. A primary driver of these increased costs is Rivian’s substantial investment in Research and Development.

In 2020, the company allocated $766 million to R&D. During the first six months of 2021, R&D expenditure reached $683 million.

Future Investments and Expansion

Further increases in costs are anticipated. Rivian projects cumulative capital expenditures of approximately $8 billion by the end of 2023, as it invests in infrastructure development, including expanded manufacturing capabilities, battery cell production, service operations, charging networks, retail locations, and software development.

Rivian has outlined its long-term business strategy, which involves initially focusing sales of its EVs in the United States and Canada, followed by expansion into Western Europe. Subsequently, the company plans to enter the Asian market.

To support growth in these new markets, Rivian intends to establish local facilities.

Pre-Order Numbers and Philanthropic Initiatives

As of September, Rivian had secured 48,390 pre-orders for its R1T pickup trucks and R1S SUVs in the United States and Canada. While pre-orders, requiring a $1,000 refundable deposit, do not guarantee final sales, they serve as an indicator of product demand.

The company also revealed the establishment of a philanthropic organization named Forever. Initially, this entity will be funded with shares of Rivian’s Class A common stock, representing 1% of the company’s outstanding equity immediately before the completion of the current offering.