The Strategist

Tesla's rival reports billion-dollar loss ahead of IPO

10/04/2021 - 10:03

US startup Rivian has reported a $1 billion loss for the first half of the year before going public, Bloomberg reports.

Richard Truesdell
Richard Truesdell
Such financial results are due to minimal revenues from the company's first sales of its R1T pickup, while other developments have yet to turn a profit.

Despite such figures, the company is counting on investor interest in its IPO and a valuation at $80 billion in the offering. The startup has already been backed by giants such as Amazon and Ford Motor, which have invested a total of $2.5 billion in it, the newspaper adds.

The company's IPO plans are linked to its expansion into electric vehicles and its desire to capture a larger share of the growing market.

Rivian has collected 48,390 pre-orders for its electric pickups and SUVs. The company's Illinois plant can produce up to 150,000 electric vehicles a year, making it a major competitor to Elon Musk's Tesla, Bloomberg points out.

In September 2021, Rivian became the first electric pickup truck manufacturer to enter the consumer market, surpassing Tesla, General Motors and Ford.