Rivian’s Initial Public Offering filing to launch themselves onto the stock exchange revealed quite a bit of detail regarding the startup company’s future plans. The IPO revealed financial information regarding net loss and potential revenue that will come in once the company launches its semi-autonomous driving system.
Thanks to InsideEVs, we know a lot more about Rivian than we previously did, including the IPO revealing that there are 48,390 preorders for the R1T and R1S in the US and Canada. We also know that Rivian had a net loss of $994 million within the first half of the year, but that’s to be expected from an automaker that has only just begun to release its product.
“Vehicle Lifetime Revenue”
The filing hinted at plans to offer a semi-autonomous driving system along with a subscription for connectivity services. Rivian estimates the lifetime revenue potential for consumer and commercial vehicles to be $67,900 and $64,600. Rivian’s SEC S-1 filing reports that $10,000 would comprise the cost of the semi-autonomous driving feature. At the same time, they will offer subscriptions for infotainment and other connectivity-based services, which could be around $5,500 accumulated over ten years per vehicle.
Rivian expects the driverless tech to use the hardware installed within the R1S and R1T’s Driver+ system. Driver+ uses 11 cameras, 12 ultrasonic sensors, a high-precision GPS antenna, and five radars.
It’s hard to tell how long it’ll take Rivian to start turning a profit, but they expect a large chunk of their revenue to come from Amazon Logistics. Rivian is expected to produce up to 100,000 electric delivery vans for Amazon. Production for those vehicles is scheduled to start in December. In addition, whenever the budding automaker releases its driving tech and connectivity subscription, it will generate a considerable amount of income for the company and help them turn a profit.