Amazon Reveals 20% Stake in Rivian Ahead of Major EV IPO
Amazon officially discloses a 20% ownership stake in electric vehicle maker Rivian, valued at $3.8 billion. The tight relationship highlights both a major financial boon and a significant business risk for the upcoming IPO.
Amazon officially discloses that it holds a 20% stake in Rivian, the electric vehicle startup that recently files for its initial public offering. According to a regulatory filing, this equity investment shows a carrying value of $3.8 billion as of late September, marking a significant increase from $2.7 billion at the end of 2020. The tech giant's total financial commitment to the automaker includes $1.345 billion in direct investments and an additional $490 million in convertible notes.
Beyond its role as a major financial backer, Amazon also serves as a crucial customer for Rivian. The two companies partner in 2019 on a massive agreement to build 100,000 custom electric delivery vans. Rivian expects to deliver the first batch of at least 10 vehicles in December 2021, with the remaining fleet rolling out by 2025.
This deep integration presents both an advantage and a vulnerability for the EV maker as it goes public. Rivian openly acknowledges in its IPO risk factors that a significant portion of its initial revenue depends entirely on this single customer and shareholder. If Amazon alters its purchasing plans or dissolves the partnership, Rivian admits its financial condition and business prospects could suffer materially.