Rivian is fueled by a powerful force: Jeff Bezos’ desire to spite Elon Musk

Must read

And, much less immediately, to that fanboy’s archnemesis Elon Musk.

When the Amazon founder this summer time grew to become the primary American entrepreneur to hurl himself to the edge of space on his personal personal firm’s rocket, Rivian vehicles shuttled Bezos and his fellow astronauts to and from the West Texas launch web site.

The Rivian shuttles throughout the broadly publicized occasion had been, in fact, strategic product placement by Bezos for his handpicked contender to tackle Tesla. On the time, Rivian was nonetheless a non-public firm with no precise merchandise in the marketplace. However Amazon had made an enormous wager on Rivian in 2019, taking a 20% stake within the firm. The famously (or notoriously) calculating Bezos was bringing two of his pet tasks — Blue Origin and Rivian — onto the worldwide stage on the identical time.

The cherry on high: It was additionally an enormous center finger to Musk.

Bezos and Musk spent a lot of the previous 12 months yo-yoing between the titles of Richest and Second Richest particular person on the earth. Their feud goes again years, centered on their competing house journey ambitions. Bezos’ Blue Origin has been fighting NASA over the company’s determination to contract with Musk’s SpaceX to construct a lunar lander meant to take people again to the moon.
NASA says moon landing goal pushed to 2025 due to Blue Origin litigation, other factors

To this point, all of Blue Origin’s efforts to combat NASA’s determination have fallen flat.

However Rivian’s blockbuster IPO — the strongest debut by a US firm since Fb listed its shares in 2012 — offers Bezos one thing of a win within the ongoing proxy battle he is combating with Musk.

Two years in the past, Amazon led an funding of $700 million in Rivian and introduced it was ordering 100,000 of its electrical vans. On the time, the EV subject was crowded with upstart manufacturers resembling Nikola, Lordstown and Fisker, all of which had been vying to place themselves as the subsequent large factor. Since then, Rivian has emerged because the heavyweight (helped as a lot by investments from Amazon and Ford as by severe regulatory investigations into would-be rivals Nikola and Lordstown).
Rivian also can thank Musk for fomenting the EV hype that traders have been getting drunk on for the previous few years. Many analysts say Tesla, with a market cap of round $1 trillion, is wildly overvalued, however it retains on climbing. FOMO is a strong power on Wall Road, and people who missed out on Tesla a decade in the past could also be attempting to make up for it by shopping for Rivian, a 12-year-old startup that hasn’t but delivered any merchandise to clients and by some means is price greater than Ford (F) and GM (GM).

Whether or not Rivian can reside as much as the hype is anybody’s guess. For an investor, it is a consolation to know that Rivian has the backing of somebody with pockets as deep and grudges as bitter as Bezos’.

Investing is at all times dangerous. However one factor we are able to rely on is that uber-rich males will actually purchase complete corporations to spite their enemies slightly than go to remedy.

- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest article