Benzinga | Nov 10, 2021 11:23AM EST

Amazon 'Doubling Down' On Rivian IPO: What Investors Need To Know

Electric vehicle company Rivian Automotive Inc (NASDAQ:RIVN) is set to make its public debut Wednesday. Shares were indicated to open around $121 per share at press time.

Amazon.com Inc (NASDAQ:AMZN) is set to "double down" on its Rivian investment by purchasing additional shares during the IPO, according to CNBC's Phil LeBeau.

"I cannot stress this enough," LeBeau said Wednesday on CNBC's "Squawk On The Street," Amazon and Rivian are "as tight as tight can be."

"Amazon is doubling down, buying more shares of Rivian."

Related Link: Amazon, Ford Among the Big Winners in Rivian's IPO

When Rivian CEO RJ Scaringe was looking for partners in 2018, he made it clear he wanted a tech company for help with software and an established automaker for manufacturing expertise, according to LeBeau.

Rivian ended up partnering with Amazon and Ford Motor Co (NYSE:F). He did not comment on Rivian's relationship with Ford, but he stressed that Rivian and Amazon are working together closely.

"I've talked with a number of people in the auto industry and they keep saying the same thing ... [Amazon and Rivian] are very close. They'll be even closer in the future," LeBeau said.

Amazon has invested about $1.3 billion in Rivian and has been testing the company's vehicles in the San Francisco area since March.

Rivian has a contract to supply Amazon with 100,000 electric delivery vans by 2030.

AMZN Price Action: Amazon has traded as high as $3,773 and as low as $2,881 over a 52-week period.

The stock was up 0.60% at $3,597.67 at time of publication.

Photo: courtesy of Amazon.