Does Amazon or Ford own Rivian? – MotorBiscuit
Rivian’s rise from a largely unknown EV startup to the darling of the electric vehicle world is – frankly – amazing. Rivian deserves most of the credit for his early success with the highly regarded R1T electric truck and R1S electric SUV. This success, however, may not have been possible without the help of two very large and iconic companies: Amazon and Ford. Both companies have interests in Rivian.
Ford and Amazon: minority owners of Rivian
Does Amazon or Ford own Rivian? Partly yes, but not completely. In the corporate world, there is what is known as âminority ownershipâ, meaning a person or company that owns less than 50% of another company.
In the case of Amazon and Ford, they each own 5% of Rivian. While that may not seem like much, when you are talking about a company worth billions of dollars, this capital injection is very significant. Plus, ownership could get even higher as Rivian nears its upcoming IPO. Additionally, that investment, especially from Amazon, has been a catalyst for additional investments from companies like Fidelity, T. Rowe Price, and D1 Capital Partners.
Additionally, the Amazon and Ford investment gave Rivian instant credibility. When companies as big as Amazon and Ford have a significant stake in a startup like Rivian, people take notice.
Rivian Amazon Prime delivery truck
Not only does Amazon partially own Rivian, it is also the electric car maker’s largest customer. Rivian has a contract to build 100,000 Rivian Amazon Prime electric vans by the end of the decade with a planned delivery of 10,000 vans by the end of this year.
The contract for the Rivian Amazon Prime delivery van is likely to be even more impactful than Amazon’s involvement. PitchBook analysts estimate the van order to be worth $ 4.5 billion. Additionally, the Amazon order could be a catalyst for orders from other companies that want a Rivian electric fleet vehicle. The Amazon order is so critical to Rivian’s success that the EV automaker is prioritizing production of the Rivian Amazon Prime vans over production of the R1T and R1S.
Why does Ford partially own Rivian?
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The motivation behind Ford’s 5% stake in Rivian is unclear. Electric trucks are the next big thing for electric vehicles. Given that the Ford F-150 is the best-selling vehicle in the country, the all-electric F-150 Lightning is set to be a huge hit.
Now, however, Ford is a partner in the company that makes the R1T, one of the F-150 Lightning’s biggest competitors. Contributing to the intrigue, Rivian beat Ford and other automakers like Tesla (Cybertruck) and GMC (Hummer EV Pickup). It is the first car company to deliver an electric truck to customers.
Be a partner in Rivian and buy some Rivian stock
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You can also become a partner in Rivian by purchasing Rivian shares. The EV automaker will soon go public with an estimated valuation of $ 80 billion. Rivian will “sell 135 million shares at a price range of $ 57 to $ 62 apiece,” according to the company Reuters.
Unless you’re a multibillionaire, you can’t get the same percentage of ownership as Amazon and Ford do. However, you can at least buy some Rivian stocks and, with luck, get a decent return.
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