Amazon disclosure reveals 20% stake in Rivian ahead of IPO

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Amazon.com has a 20% stake in electric vehicle maker Rivian, the startup with which it placed an order for 100,000 battery-powered delivery vans, the e-commerce giant revealed in a securities filing on Friday. .

As of September 30, Amazon held equity interests “including preferred shares of Rivian Automotive, Inc. representing an approximate 20% interest,” which will be valued on the balance sheet at $ 3.8 billion, from $ 2.7 billion. in late 2020, Amazon said on file.

Amazon stocks slashed losses by more than 5% after disclosure of its investment in Rivian to trade down 2.8% to $ 3,347.27 at 12:41 p.m. in New York City. The stock only gained 2.8% in 2021, behind the S&P 500 index significantly.

Rivian is seen as a real competitor in the electric vehicle market and a potential rival to incumbent Tesla. The startup has raised more than $ 10.5 billion from investors to date and is seeking a valuation of $ 80 billion in an IPO later this year, Bloomberg reported in August.

Rivian said in a filing last week that he could record a quarterly loss of up to $ 1.28 billion as he ramps up production of his first electric vehicle, a battery-powered electric pickup called the R1T. The Irvine, Calif.-Based company revealed in a separate filing earlier this year that Amazon had invested more than $ 1.3 billion in the automaker and held nearly 150 million preferred shares.

Amazon’s percentage voting power has been censored. A representative for Rivian declined to comment.

Ties that unite

Peter Krawiec, senior vice president of global corporate and business development at Amazon, is on Rivian’s board of directors. The Seattle-based company’s electric van order runs through the end of the decade, with the first 10,000 units expected to be delivered before the end of next year. The order is the cornerstone of Amazon’s ambitious plan to reduce its growing greenhouse gas emissions.

Limited production of Rivian’s first pickup began in August, and deliveries to customers began last month. The startup encountered many delays that it blamed on the supply chain challenges induced by Covid. Rivian has pushed back production of its second mainstream model, a sport utility vehicle called the R1S.

It also prioritizes manpower and resources for the production of Amazon’s van over its consumer-focused models, Bloomberg reported last month.

All three vehicles – the truck, van and SUV – will be built at the Rivian plant in Normal, Illinois. The company is in talks to invest $ 5 billion in a second factory in Fort Worth, Texas, Bloomberg reported in August. It is also evaluating options for a plant in Europe that could also build Amazon vans, Bloomberg reported in January.

Other investors in the electric vehicle maker include Ford, which has invested more than $ 820 million in Rivian and has a greater than 5% stake. Ford recently left his seat on Rivian’s board of directors.

For Amazon, the bet on Rivian represents one of its biggest investments, in dollars, in another company. The online retailer’s business development group has invested money in startups working on voice technology related to the digital assistant Alexa. Other investments concern companies that are its suppliers or partners. The list includes investments – or warrants to buy shares in – food distributor SpartanNash and air cargo operator Air Transport Services Group Inc.

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