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How Much of Rivian Does R.J. Scaringe Actually Own?

Rivian is aiming to be a major force in next-gen electric vehicles, combining sustainability with rugged utility. R.J. Scaringe founded Rivian back in 2009, driven by the vision for technology-enabled adventure vehicles. He owned the whole company at that point – but over a decade later, after billions raised from investors, how much of this promising EV startup does Scaringe still own?

The Rivian Origin Story

Scaringe started Rivian to create electric trucks and SUVs optimized for off-road performance, with his love of the outdoors and interest in sustainable transport as the genesis.

Key milestones in Rivian‘s journey:

  • 2009 – Company founded by Scaringe after buying out the existing owners of small auto startup Mainstream Motors
  • 2011-2015 – Rivian operates in "stealth mode" with small team developing prototypes
  • Late 2015 – Headquarters established in metro Detroit to leverage automotive talent
  • Nov. 2018 – Public debut of R1T pickup and R1S SUV at LA Auto Show, previewing design direction
  • Feb. 2019 – $700 million investment round led by Amazon to finance manufacturing prep
  • April 2019 – Ford invests $500 million into Rivian amidst collaboration on electric vehicle architecture
  • Dec. 2020 – Rivian announces $2.65 billion funding round led by T.Rowe Price ahead of factory rollout
  • Sept. 2021 – Start of R1T production and deliveries to customers begin rolling out

Initially self-funding Rivian with personal loans and seed money from friends/family, Scaringe spent years honing prototypes to showcase the unique value of upscale, off-road capable electric trucks/SUVs.

Major investments starting in 2019 from players like Amazon and Ford provided the billions in capital necessary to turn Rivian‘s vision into mass production vehicles ready for public consumption.

Scaringe‘s Current Stake

As Rivian has transitioned from scrappy upstart into an emerging EV juggernaut valuation at over $15 billion, what is founder R.J. Scaringe‘s ownership position now?

  • Rivian IPO in Nov. 2021 opened up company ownership broadly
  • Scaringe retains 1.4% stake, making him largest individual shareholder
  • But he no longer has majority control after sizable investments pre-IPO

 

Most Rivian ownership now lies with institutional shareholders that backed the company early and bought into the vision Scaringe sold:

Institutional Ownership

  • Amazon: 16.7% – 158 million shares
  • T. Rowe Price: 7.7% – 73 million shares
  • Ford: 5.1% – 49 million shares
  • Blackrock: 4.9% – 46 million shares

Amazon has certainly bought into Rivian in a big way as the EV maker‘s first large-scale backers, now owning over 16% of the company. Ford also maintains a substantial strategic stake after being an early partner collaborating on automotive architectures.

Estimates suggest around 30% of Rivian‘s total shares available are still held by retail investors who‘ve purchased the stock since its IPO debut. While nowhere close to majority control, Rivian has likely picked up a reasonable base of loyal individual shareholders enthused by its growth narrative.

Revenue Growth Projections

Rivian has only just begun delivering vehicles to customers over the past year, but revenues are already ramping exponentially:

  • Launched first vehicle deliveries in Sept. 2021
  • 2021 annual revenue: $55 million
  • 2022 annual revenue: $1.66 billion – massive 2,914% Year-over-Year jump!
  • Revenue last 12 months: $3.78 billion – growth continuing

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And this is just the beginning, as Rivian scales up production capacity rapidly to address huge consumer and commercial demand for electric adventure vehicles.

2030 target: 1 million vehicles produced annually

Achieving that kind of manufacturing ramp would firmly establish Rivian as a power player in EVs. Ambitious expansion plans rely on major new facilities coming online:

Plant Location Planned Capacity Operational Timeframe
Normal, Illinois up to 400K units/year Currently manufacturing
Fort Worth, Texas 100K units/year Mid 2023

Delivering the next generation R2 product line including lower priced models for wider accessibility is also key to the growth strategy.

If Rivian stays on schedule with these aggressive production milestones, the revenue outlook is extremely promising.

Valuation Forecasts

Trading around the $17 mark currently, Rivian‘s share price slipped below its $78 IPO debut after anticipation fueled a higher-than-justified initial surge.

Of course, Rivian still has its skeptics questioning whether execution can match ambition. But for investors with patience trusting years-long growth timelines, most analysts feel the risk/reward balance looks appealing for Rivian at this still-early juncture.

Consensus price target of $37 in 2025 would represent formidable 2X appreciation. Some of the most optimistic projections see Rivian shares hitting $60 or even $70 within this same period.

Driving the bull case:

  • Categorically first-mover in electric adventure vehicles
  • Headstart partnerships via Amazon/Ford validating tech
  • Strong early brand buzz/cachet amongst EV consumers
  • Huge addressable market barely tapped into yet

And Rivian anticipates delivering over $10 billion in revenue by 2024 – very strong output validating commercial demand if they hit that threshold.

Execute well on production ramp-up and infrastructure expansion, while controlling costs and avoiding missteps, and Scaringe may yet realize his dreams for Rivian as a crown jewel in sustainable transport.

Investment Options

For those compelled by Rivian‘s investment narrative with Scaringe still directing strategy, some options to gain exposure:

Direct Stock Purchase

  • Most straightforward but higher volatility as company specific-risk
  • Time horizon 5+ years ideal

EV ETFs / Mutual Funds

  • Diversify across basket of electric vehicle stocks
  • Reduces exposure to Rivian-specific uncertainties
  • Actively managed funds can adjust exposures flexibly

Rivian‘s story offers obvious appeal – an environmentally-focused automaker aiming to make electric cars exciting again through technology and adventure.

Yet questions remain about how well and how quickly Rivian can translate vision into results as it scales towards mass production. Scaringe retains managerial control and a personal stake driving urgency for his ambitious founding agenda to pay off.