The rise in Rivien from a mostly unheard-of EV start-up to the darling of the electric vehicle world – is frankly astonishing. Rivian deserves most of the credit for his early success, with the highly regarded R1T electric truck and electric SUV R1S. However, this success might not have been possible without the help of two very large iconic companies: Amazon and Ford. Both companies have a stake in Rivian.
Ford and Amazon: minority owners of Rivian
Made Amazon or Ford owns Rivian? Partly, yes, but not completely. In the corporate world, there is what is called a “minority stake”, which means a person or company that owns less than 50% of another company.
In the case of Amazon and Ford, they both own 5% of Rivian. Although it may not seem like much, when you talk about a company that is worth billions of dollars, that injection of capital carries a lot of weight. Additionally, attendance could increase further as Rivian nears his next Initial Public Offering. Additionally, this investment, especially from Amazon, has been a catalyst for further investment from companies such as Fidelity, T. Rowe Price and D1 Capital Partners.
In addition, the investment of Amazon and Ford provided a credibility in Rivian. When companies as big as Amazon and Ford have a significant stake in a startup like Rivian, people take notice.
Rivian Amazon Prime delivery vans
Amazon not only partially owns Rivian, but it’s also the EV automaker’s biggest customer. Rivian has a contract to build 100,000 Rivian Amazon Prime electric delivery vans by the end of the decade, with an expected delivery of 10,000 vans by the end of this year.
The deal for the Rivian Amazon Prime delivery van probably has even more impact than Amazon’s involvement. PitchBook analysts estimate the delivery van order is worth $ 4.5 billion. Additionally, Amazon’s order could be a catalyst for orders from other companies that want a Rivian electric fleet vehicle. Amazon’s order is so crucial to Rivian’s success that automaker EV is prioritizing the production of the Rivian Amazon Prime delivery vans over the production of the R1T and R1S.
Why does Ford partially own Rivian?
The motivation behind Ford’s 5% stake in Rivian is unclear. Electric trucks are the next big thing for electric vehicles. Since the Ford F-150 is the best-selling vehicle in the country, all electric F-150 Lightning should be a big hit.
However, now Ford is part-owner of the company that produces the R1T, one of the biggest competitors of the F-150 Lightning. Adding to the intrigue, Rivian beat Ford and other automakers like Tesla (Cybertruck) and GMC (Hummer EV Pickup) to the punch. It is the first automaker to deliver an electric truck to its customers.
Become part owner of Rivian and buy Rivian shares
You can also be a co-owner of Rivian by purchasing Rivian shares. Automaker EV will soon have its IPO, with a projected valuation of $ 80 billion. Rivian “will sell 135 million shares at a price of between $ 57 and $ 62 each”, according to Reuters.
Unless you’re multi-billionaire, you won’t be able to get the same percentage stake as Amazon and Ford. However, you can at least buy Rivian stock and if you’re lucky you could get a decent return on your investment.