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R.J. Scaringe, Rivian’s 35-year-old CEO, introduces his company’s R1T all-electric pickup and all-electric R1S SUV at Los Angeles Auto Show in Los Angeles, California, November 27, 2018.
Mike Blake | Reuters

Rivian Automotive, the electric vehicle maker backed by Amazon and Ford, priced its IPO on Tuesday at $78 a share, according to a person familiar with the matter who asked not to be named because the sale hasn’t been announced yet. The deal values Rivian at $66.5 billion.

Should underwriters exercise their full purchase option, the company will have a market cap of over $68 billion. The stock will trade on the Nasdaq under ticker symbol RIVN.

Reuters and the Wall Street Journal reported on the IPO price earlier. A Rivian spokesperson declined to comment.

Last week, Rivian increased the expected price range to between $72 and $74 from a previous range of $57 to $62. At its $78 offer price, Rivian is already worth almost as much as Ford ($79 billion) and General Motors ($85 billion). That’s all before the company has even started generating real revenue.

Rivian said in its prospectus that it will lose up to $1.28 billion in the third quarter, while revenue will range from zero to $1 million. It’s the latest EV company to attract hefty investor capital at a stratospheric price without yet proving that it has a sustainable business model.

Lucid Motors is worth $72.5 billion even though the company just began production of its first cars. Nikola’s market cap was higher than Ford’s at one point last year, despite the company having no revenue. It’s now worth less than $6 billion, after a short-selling firm accused the company of making “an Ocean of Lies.”

Investors are continuously trying to hop on the next Tesla. Elon Musk’s company topped $1 trillion in market value last month and is now the fifth most-valuable U.S. company.

While Rivian is still effectively pre-revenue, the company said in its prospectus that it has a backlog of 55,400 pre-orders for its R1T and R1S electric vehicles. The R1T is a truck that starts at $67,500, and the R1S is an SUV starting at $70,000, according to Rivian’s website.

The company said it expects to fill those orders by the end of 2023. Additionally, Amazon has ordered 100,000 vehicles to be delivered by Rivian by 2030, and the companies plan to have 10,000 new Rivian-Amazon delivery vehicles on the road as early as next year. Amazon is pushing its fleet to renewable energy sources, and said in 2019 that it was purchasing thousands of vehicles from Rivian.

Amazon, which invested more than $1.3 billion into Rivian, owned 22.4% of the company’s Class A shares prior to the IPO. That stake is worth about $12.5 billion at the offer price. Ford owned 14.4% of Class A stock before the offering, a stake now valued at $8 billion.

Rivian says its factory in Illinois has the capacity to produce up to 150,000 vehicles per year. The company had over 6,000 employees as of the end of June.

— CNBC’s Lora Kolodny and Annie Palmer contributed to this report

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Ray-Ban Meta smart glasses revenue tripled over the year, EssilorLuxottica says

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Ray-Ban Meta smart glasses revenue tripled over the year, EssilorLuxottica says

Ray-Ban Meta smart glasses on display in the window of a Ray Ban store in London, UK, on Friday, July 19, 2024. 

Bloomberg | Bloomberg | Getty Images

Revenue from sales of Ray-Ban Meta smart glasses more than tripled year over year, EssilorLuxottica revealed Monday as part of the company’s most recent earnings report.

EssilorLuxottica said the success of the Ray-Ban Meta glasses, built via a partnership with the Facebook parent stemming back to 2019, contributed to its first-half overall sales of 14.02 billion euro (US$16.25 billion), which represents a 7.3% year-over-year jump.

“We are leading the transformation of glasses as the next computing platform, one where AI, sensory tech and a data-rich healthcare infrastructure will converge to empower humans and unlock our full potential,” EssilorLuxottica CEO Francesco Milleri and deputy CEO Paul du Saillant said in a joint-statement. “The success of Ray-Ban Meta, the launch of Oakley Meta Performance AI glasses and the positive response to Nuance Audio are major milestones for us in this new frontier.”

In the earnings report, the company said that its new Oakley Meta smart glasses, unveiled in June, represents the latest product line to come from its partnership with the social media company. CNBC reported in June that Meta and Luxottica plan to debut a Prada-branded version of its smart glasses in the future.

Luxottica owns several well-known brands including Ray-Ban, Oakley, Vogue Eyewear and Persol.

In September, Meta renewed a long-term partnership agreement with Luxottica to “collaborate into the next decade to develop multi-generational smart eyewear products,” according to the announcement.

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MicroStrategy copycats are getting out of control as Canadian vape company joins fray

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MicroStrategy copycats are getting out of control as Canadian vape company joins fray

The logos of Bitcoin, Ethereum, and Tether outside a cryptocurrency exchange in Istanbul, Turkey, on Wednesday, Nov. 6, 2024. 

David Lombeida | Bloomberg | Getty Images

The crypto market’s bullishness may be tipping into speculative frenzy, if the latest MicroStrategy-style copycat is any indication.

On Monday, a little-known Canadian vape company saw its stock surge on plans to enter the crypto treasury game – but this time with Binance Coin (BNB), the fourth largest cryptocurrency by market cap, excluding the dollar-pegged stablecoin Tether (USDT), according to CoinGecko.

Shares of CEA Industries, which trades on the Nasdaq under the ticker VAPE, rocketed more than 800% at one point after the company announced its plans. CEA, along with investment firm 10X Capital and YZi Labs, said it would offer a $500 million private placement to raise proceeds to buy Binance Coin for its corporate treasury. Shares ended the session up nearly 550%, giving the company a market cap of about $48 million.

Given the more crypto-friendly regulatory environment this year, more public companies have adopted the MicroStrategy playbook of using debt financing and equity sales to buy bitcoin to hold on their balance sheet to try to increase shareholder returns, pushing bitcoin to new records.

Now, with the S&P 500 trading at new records, the resurgence of meme mania and a pro-crypto White House supporting the crypto industry, investors are looking further out on the risk spectrum of crypto hoping for bigger gains.

In recent months, investors have rotated out of bitcoin and into ether, which led to a burst of companies seeking a similar treasury strategy around ether. SharpLink Gaming, whose board is chaired by Ethereum co-founder Joe Lubin, was one of the first to make the move. Other companies like DeFi Development Corp, renamed from Janover, are making similar moves around Solana.

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Trump Organization says Amazon, Walmart, eBay sellers are hawking knockoff shirts, hats, mugs

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Trump Organization says Amazon, Walmart, eBay sellers are hawking knockoff shirts, hats, mugs

Donald Trump

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The Trump Organization has filed a lawsuit against unnamed online merchants it said are hawking counterfeit merchandise promoting President Donald Trump.

In the suit, filed Friday in U.S. District Court in Florida, the company accused the merchants of selling “inferior imitations” of Trump-branded products on several online marketplaces, including Amazon, Walmart and eBay.

The Trump Organization company, which is owned by Trump, sells a variety of branded merchandise through its website, including a gold T1 smartphone. The Trump Organization alleges the online merchants didn’t license its trademarks and weren’t authorized resellers of genuine merchandise.

“By selling counterfeit products that purport to be genuine and authorized products using the TRUMP trademarks, defendants cause confusion and deception in the marketplace,” the complaint says.

Coffee mugs, hats, t-shirts and sweatshirts emblazoned with “Trump,” “Trump 2028,” and American flags were among the examples of alleged knockoffs listed in the suit.

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The Trump Organization intends to file a motion to seal an exhibit listing the merchants’ identities, according to the complaint.

The company is seeking to prevent the merchants from using Trump trademarks. It also asks a judge to compel Amazon and other online marketplaces to destroy the alleged counterfeit goods and close the merchants’ selling accounts.

Representatives from Amazon, Walmart and eBay didn’t respond to requests for comment.

Amazon, Walmart and eBay all operate thriving online marketplaces that allow third-party businesses to list and sell goods. The companies have all battled issues in the past around the sale of inauthentic or unsafe goods on their platforms.

Amazon sellers looked to cash in on Trump’s return to the White House earlier this year.

Sales of Trump-branded merchandise, including calendars, toilet paper and greeting cards, spiked in January, according to e-commerce marketing company Omnisend, which collected its data from seller software provider JungleScout.

In the lead-up to last year’s election, Amazon sellers made $140 million from Trump-related merchandise and $26 million from products promoting presidential candidate and former Vice President Kamala Harris, Omnisend found.

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