Amazon disclosed on Friday that it owns a 20% stake in Rivian, an electric car manufacturer that applied for an IPO earlier this month. The documents show that as of September 30, the e-commerce giant held equity investments, including Rivian preferred stock, which represented approximately 20% of the ownership interest. The “book value” of this holding is US$3.8 billion, higher than the US$2.7 billion as of December 31, 2020.

The disclosure appeared in a regulatory document, providing new insights into Rivian’s future relationship with Amazon. According to the electric car manufacturer’s initial public offering, Amazon has invested $1.345 billion in Rivian. Amazon also recently purchased $490 million worth of convertible notes on Rivian. According to certain pricing regulations, these notes will be converted into Class A shares after the IPO.

Amazon is not only an investor in Rivian; it is also a customer. In September 2019, Rivian reached an agreement with Amazon to produce 100,000 electric delivery vehicles. Rivian revealed earlier this month that it expects to deliver at least 10 cars in December 2021. All trucks (the remaining 99,990) will be delivered in 2025.

When Rivian’s IPO applications fell for the first time, it was clear that Amazon was an important part of the Rivian world. For example, in the Rivian S-1 document, there are 81 mentions of Amazon.

This is due to Amazon’s dual identity as an investor and a customer. At the time, Amazon seemed to own at least 5% of Rivian, although the final figure has not yet been announced. Amazon’s disclosures indicate that its holdings are much larger.

News Source : TE