Rivian To Put Its Equity into a Fund To Protect The Environment
There has been a lot of buzz surrounding Rivian in the past year. Its production and delivery of its R1T pickup truck and R1S SUV has started, they have an upcoming IPO with a possible valuation between $50-$80 Billion according to various analysts when it debuts, and now the announcement of the Forever Fund.
The Forever Fund, announced by CEO RJ Scaringe, is the initiative to put “1% of Rivian’s equity into Forever, providing it with the financial platform to focus on high impact climate initiatives with an emphasis on preserving and restoring wildlands, waterways, and oceans.” This philanthropic-focused fund will help to address climate change and focuses on its “high impact climate initiatives.”
One key thing to note about this fund is the fact that Rivian will not invest profits into environmental causes, for the reason that it would be greenwashing.
This is big news especially considering how Rivian is preparing for its IPO as previously stated. In these files, the company has stated that it has not been profitable, and is not expected to be profitable “for the foreseeable future as we invest in our business, build capacity, and ramp up operations.” This was also similar to Tesla, a company that is now profitable but was not for years since its inception.
This is a great step for Rivian as an electric car company that was already focused on making a more environmentally friendly product in the form of an electric car. But now with the Forever Fund, they are really making a huge step up to further increase their mission. It will certainly be interesting to see what the next few years will look like for this company.