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Buying a new car used to come with awesome perks like the vehicle losing 20% of its value as soon as it left the lot. Electric truck maker Rivian gave its customers a much cooler perk: shares for one of the hottest IPOs of the year. Rivian went public on Wednesday… …and the company reserved 7% of the IPO allocation for customers that put in preorders for its trucks and SUVs. These individuals were allocated a max of 175 shares, which totaled $13,650 at the $78 IPO price, per CNBC. Anyone that took the offer notched an easy 29% gain on its first trading day. And another 20%+ on the 2nd day Rivian — which many believe is the next Tesla — is now at $123 a share (and worth $120B), which is more than some no-name car manufacturers like Ford ($78B) and GM ($89B). Don’t cry for Ford, though: It has a 12% stake in Rivian worth ~$14B (second to Amazon, with a 20% stake worth ~$24B). Rivian isn’t the only startup to reward its stakeholders at IPO:
There is one big difference Unlike these other examples, Rivian doesn’t have actual customers. It does have a 55k+ vehicle order backlog and projects Q3 revenue between $0 (yes, zero) and $1m. The biggest upside for Rivian is Amazon’s commitment to buy 100k of its vans by 2030. In the near term, customers who bought Rivian’s pre-IPO shares probably aren’t complaining. Also, you can’t “lose 20% driving off the lot” if there’s no car! Source: CNBC, The Hustle |
How Rivian Customers Made 29% Pre-Ordering Their Electric Car
