August 27, 2021

(Reuters) Inc-backed electric vehicle company Rivian is seeking a valuation of around $70-80 billion in its initial public offering, a source familiar with the matter told Reuters on Friday.

Rivian confidentially submitted plans to U.S. regulators for an IPO, the company said in a statement.

The company, which aims to compete with Tesla Inc, is looking to start production of an electric pick-up and an SUV this year.

Rivian’s filing comes as automakers are racing to develop EVs, with China, Europe and other countries and regions mandating lower carbon emissions.

In the United States, traditional carmakers such as General Motors Co and Ford Motor Co are retrofitting plants for EV production, while Tesla, Taiwanese contract manufacturer Foxconn and several startups are expanding existing plants or are building them.

Earlier this month, Reuters reported that Rivian was in discussions to invest at least $5 billion in a new vehicle plant near Fort Worth, Texas.

A slew of EV startups, including Nikola Corp, Fisker Inc and Lordstown Motors Corp, have chosen to merge with special purpose acquisition companies, or SPACs, to go public.

Rivian did not provide any other details of the IPO.

The company has raised $10.5 billion since the start of 2019, including $2.5 billion in July in a round led by Amazon and Ford.

(Reporting by Anirban Sen, Noor Zainab Hussain and Subrat Patnaik in Bengaluru; Editing by Saumyadeb Chakrabarty)

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