Rivian, the electric car company acquired by Google parent Alphabet in 2016, has filed for an initial public offering and seeks to raise more than $50 billion in a valuation north of $20 billion.
The filing with the SEC says the company is targeting a valuation over $100 billion and believes it could have “an enterprise value of over $200 billion.” But that doesn’t include projected equity expenses or debt financing.
“Rivian continues to be on track to offer customers around the world, in 2019, an electric, all-electric and scalable car that will combine exceptional performance, minimal environmental impact, and fun-to-drive characteristics,” the filing said.
The company plans to use a combination of debt and equity financing. In the filing, the company said it has no other, formal financial plans at this time.
Alphabet’s acquisition of Rivian was one of the biggest bets on the future of transportation in the past decade.
It came just months after Alphabet founder and CEO Larry Page revealed he had taken a leave of absence to battle an unspecified health condition. The company has never disclosed the nature of his condition.
But in 2016, Page started hiring a new head of hardware business, John Krafcik, who previously led Hyundai’s US car business.
Rivian wasn’t Page’s only ride-hailing-and-drive-electric-car acquisition. It also bought Otto, an electric-car engineering startup founded by Google’s former self-driving car chief, Anthony Levandowski.
In October 2016, Krafcik announced the startup had developed a car that could be driven without driver assistance.
While Google’s self-driving car efforts have crashed and burned, this was an apparent bet that electric cars and ride-hailing and ride-sharing would be key growth areas. It was also seen as an attempt to replace Alphabet’s fleet of autonomous vehicles.
That project hasn’t yet materialized. And now, none of its autonomous vehicles are on the road.
Page and Krafcik have since taken on the increasingly difficult task of guiding Google’s future.
Alphabet’s stock has shot up this year on optimism that Google will eventually launch a paid video streaming service, which could have higher margins than its other ad-related businesses.
But as Google matures, so too do its ambitions in the consumer and enterprise spaces.
— By Victoria Andriakos and Holly Yan