Amazon and Rivian is no more speculation. Surprisingly, Amazon unviels shares in Rivian. Amazon announced on Friday that it owns a 20% investment in Rivian. The Rivian is an electric car company. Moreover, the Rivian filed for an initial public offering (IPO) earlier this month.
According to the filing, as of September 30, the e-commerce behemoth had equity stakes. Including preferred stock in Rivian that represented around a 20% ownership position. As of December 31, 2020, that holding had a “carrying value” of $3.8 billion, up from $2.7 billion.
Regulatory Filing reveals Amazon share in Rivian
The regulatory filing reveals important information. This tech tip sheds new light on how intimately Rivian’s destiny is linked to Amazon. According to Rivian’s initial public offering, Amazon has invested $1.345 billion. Moreover, Amazon also recently bought $490 million in electric vehicles’ convertible notes. It will convert to Class A shares after the IPO. This will, however, realize conditionally.
Agreement Between Amazon and Revian
Amazon is a customer as well as an investor in Rivian. Furthermore, they signed an agreement in September 2019. According to this agreement, they will construct 100,000 electric delivery trucks. Rivian is expecting that it anticipates at least 10 vehicles in December 2021. By 2025, all the vehicles (the remaining 99,990) will come into the market.
Rivian’s IPO filing made it clear that Amazon was an essential component of the business. This fact becomes much more prominent in the filing itself. They mentioned Amazon about 81 times in the S-1 filing. Hence, this figure is prominent given Amazon’s dual status as an investor and a customer.
At the time, it appeared like Amazon-owned at least 5% of Rivian. Nevertheless, the exact percentage was unknown. Moreover, Amazon’s declaration reveals that its interest is much larger.