Story by Maxwell Amaker, Kevin W. Johnson and Martin Brinkmann, CNN • Updated 27th June, 2019
The Rivian car-based electric vehicle company, which raised more than $100 million in a private financing round earlier this year, is preparing for an initial public offering, one of its investors tells CNN Business.
The Los Angeles startup, backed by Uber co-founder Garrett Camp and others, hopes to go public as soon as late 2019 or early 2020, the investor says.
Rivian is hoping to go public on Nasdaq, or possibly a smaller exchange, the investor said. It is eager to go public because the company wants to raise cash to finance further production of its R1T, which is expected to cost around $75,000 to $90,000.
Rivian is “getting close to an IPO, and that’s the right thing to do for the company and its business,” the investor said.
Investors are only just beginning to understand Rivian’s financing picture, which is why “it’s probably a long shot for the IPO to take place in the second half of this year,” the investor said.
Rivian plans to build about 100,000 R1Ts per year and is “pretty much sold out” as of now, the investor said. “They’re preparing for an IPO, and that’s the right thing to do for the company and its business.”
Rivian declined to comment when asked about its IPO plans.
The startup, whose headquarters are in Carlsbad, California, did set up a series of internal controls and procedures, so an IPO would not be unusual, the investor said. Rivian’s CEO, Denny Hock, has talked about the importance of building a profitable company rather than just raising money.
Rivian is only about a year old, but it has been active in the United States since 2016, when it made its first car in El Monte, California. The car was only about a half-ton, but it generated a lot of excitement because of its advanced electric powertrain.