Electric vehicle (EV) start-up Rivian has been awarded the grand title of becoming the first automaker to bring non-gas-powered pickup trucks to the consumer market. Catchy right? Many investors would have put good money on Tesla (NASDAQ: TSLA) or its rival General Motors (NYSE: GM) being the first to sell one in the highly competitive EV pickup market.
Is being first important though? With the other carmakers set to release their own models over the next two years, Rivian, which Ford (NYSE: F) invests in and is backed by Amazon (NASDAQ: AMZN), has a head start on sales. In addition, it might just have the opportunity to become the go-to favored option amongst truck lovers.
On Tuesday, Rivan CEO, RJ Scaringe, tweeted that its first R1T pickup drove off the assembly line at the company’s plant in Illinois along with pictures of his employees cheering. Scaringe stated:
“After months of building pre-production vehicles, this morning our first customer vehicle drove off our production line in Normal! Our team’s collective efforts have made this moment possible,” adding “Can’t wait to get these into the hands of our customers!”
Whilst confirming that the vehicles being produced were saleable, a spokeswoman for the company declined to share their plans for ramping up production. She also did not state the number of trucks being produced or who the first customers were.
Rivian files for an IPO
In August, Rivian announced its intention to go public by stating that it has filed confidential IPO paperwork. The news came ahead of Rivian closing a $2.5 billion funding round led by Amazon, Ford Motor, and T. Rowe Price and since 2019, the firm has raised around $10.5 billion.
The company is off to get a great start. In September 2019, Amazon agreed to purchase 100,000 of Rivian’s vans. It also looks like it is far ahead of the competition.
GM is not expected to launch its GMC Hummer EV pickup next year followed by Lordstown Motors, Ford, and then Tesla.
Should I buy Rivian stock when it IPOs?
The accomplishment of becoming the first automaker to release a pickup is no easy defeat. With the global EV industry is expected to be worth $2.49 trillion by 2027, Rivian is in a good place to dominate the pickup space. The company can also use this leverage to make a good impression on users and help it become the favored brand in the competitive space.
While Tesla’s Cybertruck is expected to be wildly popular, its release date keeps getting pushed back which is frustrating awaiting owners. The Elon Musk-led EV company recently pushed back deliveries of this model from this year to late 2022. Therefore, Rivian might just be a good play to boost your EV investment when it IPOs. Be sure to wait until it releases two earnings reports as a public company before investing though to ensure it’s on track and spending wisely.
Content Writer at MyWallSt
Nicole's favorite stock is Etsy because she loves its original and handmade items. She believes people are going to stop buying mass-produced items and start purchasing ‘one of a kind’ fashions and furnishings. In a world of sameness, Etsy has the advantage.