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Fisker went public in a SPAC reverse merger with Spartan Energy Acquisiton, under the ticker symbol 'FSR'.
Not only that but its stock price gained great momentum on the first trading day!

"Shares of electric car company Fisker rose sharply in their first day of trading Friday amid investors’ mania for electric vehicle stocks.

Fisker recently traded at $10.50, up 17%, on the New York Stock Exchange.

Fisker went public in a SPAC reverse merger with Spartan Energy Acquisition (SPAQ) - Get Report that will net the hopeful Tesla (TSLA) - Get Report competitor more than $1 billion in cash.

In a statement, Spartan Energy said the post-combination company with Fisker will give it more than $1 billion of cash on its balance sheet, net of transaction fees and expenses.

The reverse-merger is the latest in a string of special purpose acquisition company, or SPAC, reverse-mergers that have been all the rage on Wall Street this year."

Still surprised that RJ hasn't made a move yet. Anyone know what's going on?
When does Rivian go public?
Probably not any time soon. Looks like they still have plenty of cash flow. Going public would add pressure that may translate to rushing a product to keep holders happy.
 

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Fisker went public in a SPAC reverse merger with Spartan Energy Acquisiton, under the ticker symbol 'FSR'.
Not only that but its stock price gained great momentum on the first trading day!

"Shares of electric car company Fisker rose sharply in their first day of trading Friday amid investors’ mania for electric vehicle stocks.

Fisker recently traded at $10.50, up 17%, on the New York Stock Exchange.

Fisker went public in a SPAC reverse merger with Spartan Energy Acquisition (SPAQ) - Get Report that will net the hopeful Tesla (TSLA) - Get Report competitor more than $1 billion in cash.

In a statement, Spartan Energy said the post-combination company with Fisker will give it more than $1 billion of cash on its balance sheet, net of transaction fees and expenses.

The reverse-merger is the latest in a string of special purpose acquisition company, or SPAC, reverse-mergers that have been all the rage on Wall Street this year."

Still surprised that RJ hasn't made a move yet. Anyone know what's going on?
When does Rivian go public?
Why would he want to?
 

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With the very large private rounds, I don't think they particularly need the cash infusion of an IPO right now. Nor do they need the distraction from their short-term objectives of delivering vehicles.
 

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Rivian is wrapping up a new round of funding that gives them a valuation of $25 billion.

I wonder if there's going to be any new investors joining or if it's more money from Ford, Amazon etc.
 

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At a $25 billion valuation Rivian is creeping closer to Ford, which has a $33.8-billion market cap.

 

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Forbes has done a bit of speculating on whether Rivian stock can challenge Tesla if they go public.

 

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As much as I'd love to invest in Rivian, I hope they stay private b/c it enables them to focus on things that will produce a great customer experience vs. hitting Wall Street quarterly expectation. I worked in finance for a multi-billion $$$ global tech company, and we allocated a lot of time, effort, and resources to hit quarterly earnings targets that could have been better utilized elsewhere.

Also, the price the stock would IPO is somewhat meaningless, especially in this day and age of fractional trading and ownership. What really matters is market cap. They could issue 25M shares @ $100 or 50M shares @ $50, and the value would be the same.
 

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As much as I'd love to invest in Rivian, I hope they stay private b/c it enables them to focus on things that will produce a great customer experience vs. hitting Wall Street quarterly expectation. I worked in finance for a multi-billion $$$ global tech company, and we allocated a lot of time, effort, and resources to hit quarterly earnings targets that could have been better utilized elsewhere.

Also, the price the stock would IPO is somewhat meaningless, especially in this day and age of fractional trading and ownership. What really matters is market cap. They could issue 25M shares @ $100 or 50M shares @ $50, and the value would be the same.
Since you have finance experience, if Rivian were to go public at some point. How far out would you guess it happens?
 

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Rivian could be going public as soon as September with a valuation of around $50 billion.


Rivian Automotive Inc., the electric-vehicle startup backed by Amazon.com Inc. and Ford Motor Co., is looking to go public as soon as September at a valuation of about $50 billion and perhaps more, according to people familiar with the matter.

The company’s timeline for an initial public offering and its potential value might change, and a listing could happen later in the year or even slip to 2022, said the people, who asked not to be identified discussing private information. Rivian has been speaking to bankers about its plans, one of the people said.

Rivian, one of the highest-profile potential competitors to Tesla Inc., has raised more than $8 billion to date from investors who expect its battery-electric pickup and SUV to perform well in the U.S. market. At a $50 billion valuation, it would likely be one of the biggest IPOs of the year and one of the most noteworthy EV listings since Tesla’s 2010 offering.

The startup was valued at $27.6 billion in a funding round in January, Bloomberg News reported. Rivian raised $2.65 billion in the round from a group of investors led by T. Rowe Price Group Inc. Also in January, Claire McDonough, a former JPMorgan Chase & Co. executive, became Rivian’s chief financial officer.

A representative for Rivian declined to comment.

Several electric vehicle makers and related companies have gone public in the past year through IPOs or through deals with so-called blank-check companies. Chinese EV startup Li Auto Inc. raised $1.26 billion in a U.S. IPO in July. Another Chinese electric-car company, XPeng Inc., raised $1.5 billion in August in a U.S. listing.

Fuel cell-truck startup Hyzon Motors Inc. agreed this month to a merger with Decarbonization Plus Acquisition Corp., in a deal that values the two combined at more than $2 billion. Last year, Nikola Corp. also went public in a deal with a blank-check company, also known as a special purpose acquisition company, or SPAC.

Rivian has more than 3,600 employees split across offices in Michigan and California and its production facility in Illinois.

Rivian also has a deal with Amazon to build 100,000 custom electric delivery vans by 2030. In the near-term, the companies say 10,000 of the vans will be on the road making deliveries by 2022. Rivian will build three different models of the van, which is capable of going about 150 miles on a single charge.

Production and U.S. deliveries of its debut consumer EV, the R1T pickup, are due to start in June. The company will then start delivering its R1S SUV in August. The company has retrofitted a former Mitsubishi Motors plant in Normal, Illinois, where it also plans to build the EV delivery van for Amazon.
 

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Since you have finance experience, if Rivian were to go public at some point. How far out would you guess it happens?
September...only b/c I saw the above article. I'd previously thought they'd stay private longer, but I guess the allure of current sky-high market values is too much to pass up. Let's see if the market conditions stay ripe for an IPO, as a much-anticipated correction could derail those plans.
 

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Just an armchair pundit take here, but I really can't see them going through with it until they've closed a quarter with actual revenue. Rivian just seems too conservative to seek a valuation based wholly on the EV/Tesla hype wagon. I don't doubt that they're thinking about it and talking with the potential underwriters, I just personally think slipping into 2022 is more likely than not.
 

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Just an armchair pundit take here, but I really can't see them going through with it until they've closed a quarter with actual revenue. Rivian just seems too conservative to seek a valuation based wholly on the EV/Tesla hype wagon. I don't doubt that they're thinking about it and talking with the potential underwriters, I just personally think slipping into 2022 is more likely than not.
I guess for now we could keep an eye on public SEC filings and other things that have to happen before any real IPO movement. A later launch sure seems possible. Tesla did wait 3-4 years or a bit more before going public after launching the Model S I believe.
 

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I guess for now we could keep an eye on public SEC filings and other things that have to happen before any real IPO movement. A later launch sure seems possible. Tesla did wait 3-4 years or a bit more before going public after launching the Model S I believe.
However, to delay so long as to miss what is obviously a market very hot for EV stocks is risky.
 

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This is a good article that delves into why Rivian would want to go public right now.


Several experts told WGLT the timing makes sense, even if it does feel a little premature. The stock market is hot right now. There is excitement about EVs—as seen by publicly traded Tesla’s valuation recently topping $800 billion, despite selling far fewer cars than its legacy peers.

“The reason why you may want to consider going to the public market right now, is the market is pricing you like a technology company, not like a car company,” said Jaime Peters, assistant professor of accounting and financial services at Illinois Wesleyan University in Bloomington. “And that’s probably gonna last as long as Elon Musk continues to waive that magic wand he has and convince people that Tesla is worth that much money.”

Many of Rivian’s existing investors, like Amazon, are in it for the long haul. But the calculus may be different for Rivian’s institutional investors like T. Rowe and Black Rock and their clients, said Peters.

“They need a payoff, and there’s only one way to pay off that size of an investment, and that’s an initial public offering,” Peters said. “You go public and you get new investors to basically buy out your old investors, typically at a really large gain for those investors.”

A fall IPO would make sense because that’s shortly after Rivian plans to deliver its first Normal-made electric trucks and SUVs to customers this summer, said Abhishek Varma, associate professor of finance at Illinois State University’s College of Business.

“They’re going to get the vehicles out and they’ll say, ‘Look, we told you we’ll do it. We’ve done it,’” Varma said. “And they’re gonna go to the market, and investors are going to look at that and say, 'Look, this is no longer a concept company. You can see the reality in front of us.'”

Of course, the No. 1 upside of an IPO is the company gets a lot of money. Rivian has a lot of money. It has privately raised $8 billion since the start of 2019.

But starting a car company ain’t cheap.

Rivian previously said it planned to invest around $750 million in its Normal manufacturing plant. Plus, the company still has to build out its retail, charging and service network to actually deliver a good customer experience, among other costs. And it’s competing against not just Tesla but also pivot-to-EV legacy automakers like GM.

“This is a really expensive business,” Peters said. “Tesla is still raising money.”

Rivian founder and CEO RJ Scaringe, in an interview with CNBC in June 2020, said his company had no plans to go public in the foreseeable future. But he said the company was “open” to additional financing to help support its “aggressive growth plans,” CNBC reported.

“We’re in a position where we’re well-capitalized to launch the products, but we are rapidly expanding and growing and accelerating some of our future products,” Scaringe said. “We’re seeing demand being significantly higher than what we initially anticipated, which is leading us to capacitive for higher levels of volume.”

Going public also would allow Rivian to begin compensating its employees with stock. It also raises its profile; there’s something intangibly sexy about your symbol being on the ticker.

And, there are downsides to going public.

While Rivian is certainly sharing some of its financials with existing investors, that information doesn’t become public. Some if it would if Rivian was publicly traded. It would be forced into playing the quarterly earnings game, where investors and the media judge companies based on whether they hit or missed expectations. That can force some companies to think short-term instead of long-term.

There are exceptions. Publicly traded Amazon, one of Rivian’s backers and fleet customers, has a history of long-term thinking and patience, said Sam Abuelsamid, principal analyst for e-mobility at Guidehouse, who is based in Detroit. Amazon’s leaders are willing to re-invest in the company at the expense of short-term profits, he said.

“I wouldn’t be surprised to see Rivian follow a similar path,” Abuelsamid said. “I suspect RJ (Scaringe) is not going to be a leader that’s going to lead based on whatever the market thinks it should be doing on any given quarter.”
 
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