Elon Musk’s electric-car startup Rivian to cross $70bn valuation

By the time VC is trading later today, Rivian, the electric-car startup backed by SpaceX founder Elon Musk, will have crossed a valuation of about $70bn.

Rivian raised an estimated $5bn over the course of its investment by avoiding taking on debt to pay for its ongoing production ramp-up. It had at least $4bn in cash at the end of March.

In its last known round of investment, in 2016, the company was valued at roughly $5bn. The company intends to start trading its shares today through an initial public offering and is in talks to sell 16m shares to raise about $675m, according to a filing.

That would value Rivian, a maker of small electric and self-driving cars, at almost $70bn, according to an I.P.O. filing. The Tallinn, Estonia-based company’s initial shares are expected to be priced between $26 and $29 each. But that range is unchanged from a filing it made in September.

Rivian’s R&D chief Todd Drimmer will be stepping down in December, according to the filing. The company is seeking to replace him with its chief financial officer, David Hilfman.

Rivian had been valued around $7.8bn in September, based on the shares for sale in the IPO and the proposed size of its secondary offering. A person familiar with the matter said the company’s backers include Microsoft, Martin EQT, Kinnevik and Glumac Capital.

With Jerome Pugmire

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