Electric vehicle (EV) maker Rivian released pricing information for its initial public offering today, which will begin trading Friday on the Nasdaq under the ticker symbol RIR. The company was valued at $6.4 billion when it filed its confidential IPO papers in April, according to the filing.
Rivian, based in Ann Arbor, Michigan, created the all-electric Rivian R1T, which it unveiled at the International CES in January, and the more powerful Rivian R1S. Both cars feature rechargeable batteries, a diesel engine for city trips, and the onboard engine, which runs on regenerative braking, to produce lower emissions.
To begin with, the R1T will cost $35,000 and the R1S $50,000 after incentives. They’ll be offered in a handful of national and international markets, with plans to expand in the U.S. and internationally.
Shannon Quattrini, an analyst with Kelley Blue Book, said the price marks a major breakthrough for electrified cars as companies make significant progress in reducing the cost of EVs. “The Rivian R1T is really a revolutionary vehicle with big goals,” she said. “It really shows we’re one step closer to a mass market, affordable EV.”
The R1T represents the latest “crossover” offering from Rivian, which is already known for developing luxury sedans, SUVs and pickup trucks. But the automaker has yet to ink a development deal with a big automaker, including the largest among U.S. auto giants, General Motors.
Analysts say automakers are concerned about marketing EVs to mainstream buyers. Tesla’s higher-priced mass-market Model 3 has received over 500,000 reservations, but only about 13,000 vehicles have been delivered to customers so far, costing $5,000 each. By comparison, an R1T would cost a little over $50,000 after incentives, which are typical with EVs.
“It’s still not to the point where large automakers see it as a viable business option,” says Kelley Blue Book’s Quattrini.
The Rivian R1T will go into production in the third quarter.
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