Rivian, an electric vehicle start-up, reveals large losses in its IPO filing

Investors are keeping a close eye on how much cash is consumed by young, fast-growing companies, in case they run out. Rivian’s operations used $ 850 million in the first half of this year, roughly the same amount as all of last year. He said he had $ 3.7 billion in cash at the end of June, which includes the money he raised when he issued $ 2.7 billion in shares. privileged in January. It also borrowed $ 2.5 billion through “convertible promissory notes” in July.

Rivian has more than $ 10 billion in investments from Amazon, Ford Motor and several Wall Street companies. The record showed that Amazon had invested $ 1.35 billion in Rivian through equity investments and $ 490 million by purchasing the tickets sold in July. Ford’s investments total $ 1.24 billion. T. Rowe Price, the mutual fund company, has invested $ 2.6 billion.

The record does not specify what percentage of Rivian shares these investors own.

During its often eventful rise, Tesla experienced production issues that strained its finances. Tesla chief executive Elon Musk also made some missteps that caused regulatory problems for the company and created other controversies. But the company appears to have won the backing of investors – its $ 777 billion stock market value is 10 times that of General Motors.

Rivian founder and CEO RJ Scaringe, a studious engineer with a doctorate. of MIT, kept a relatively low profile and avoided overselling what the company can do, according to industry experts. His pay was $ 1.3 million last year, according to the filing. But his salary this year could be much bigger, provided Rivian’s stock performs well. In January, Rivian’s board of directors granted Mr. Scaringe 6,785,315 shares and a performance option allowing him to purchase up to 20,355,946 shares.

Rivian said in the file that he started delivering his truck, the R1T, in September, but he did not specify the number of vehicles delivered during the month and a company representative declined to provide a number. Rivian plans to start delivering its SUV, the R1S, later this year.

The cheapest model of the truck costs $ 67,500 and the SUV $ 70,000. On the record, the company said as of September 30, it had approximately 48,390 orders for its truck and SUV in the United States and Canada from customers who each made a refundable down payment of $ 1,000.

The Rivian models are part of a wave of electric vehicles hitting the market to challenge Tesla. Earlier this year, Ford Motor began selling an electric sport utility vehicle, the Mustang Mach-E, and Volkswagen launched its own electric SUV, the ID.4. Ford is set to add an electric version of its popular F-150 pickup truck next year. The F-150 is a work truck and would not directly compete with Rivian’s truck, which is marketed more as a recreational vehicle.

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