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Rivian Industries Corp. is working with Goldman Sachs Group Inc. and Morgan Stanley to evaluate the premium electric vehicle and supercar company’s potential for an initial public offering, two people familiar with the matter said.
The Wall Street firms have been invited to come up with a valuation of Rivian that may exceed $50 billion, said the people, who asked not to be identified discussing private information. Potential public stockholders are private equity firms and hedge funds, the people said.
Automotive IPOs are edging toward the end of the year, and Rivian’s IPO may come after Warren Buffett’s MidAmerican Energy Holdings Co. takes majority control of Progressive Corp. early next year. Rivian aims to beat late this year or next year for an offering, the people said.
Rivian declined to comment. The names of the investment banks haven’t been made public, and a final agreement hasn’t been reached, the people said.
The auto manufacturer’s sleek vehicles draw inspiration from technology that reshaped the automotive industry during the 1990s, including the electric motor, lightweight composite materials and dashboard electronics. Known for its Furia RS concept car, Rivian claims to have created the world’s first purpose-built pure electric vehicle with an e-powered range of 200 miles.
CEO Ralph Gilles says Rivian, based in Warren, Michigan, also plans to leverage its Battery Performance Engineering business to provide consumers with fully modular vehicle components and solutions that can be easily customised.
In mid-October, Rivian raised $80 million in an initial round of equity financing. The company has also raised $400 million from one investor, ARC Financial Corp., an acronym that stands for Automotive Components Holding Corporation.