How much of Rivian’s revenue comes from haram?

Rivian currently does not generate revenue.

Rivian is currently developing electric pickup trucks and SUVs with a focus on autonomy. 

The company has a contract with Amazon to produce and deliver 100,000 electric delivery vans through 2024. 

Practical Islamic Finance concludes:

None of Rivian’s revenue comes from anything inherently haram.

Does Rivian rely on interest to operate?

Year-to-Date
for period ended
6/30/2021
Fiscal year
ended
12/31/2020
Fiscal year
ended
12/31/2019
Interest Income $1,000$10,000$18,000
Total Revenue$0$0$0
Interest Expense $6,000$8,000$34,000
Total Expenses$990,000$1,021,000$409,000
Interest Income / Revenue
Interest Expense / Total Expense0.61%0.78%8.31%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes: 

Riba is used but not currently relied upon in Rivian’s operations.

What is Rivian’s Environmental, Social, and Governance (ESG) impact?

Environment

Transportation is the largest contributor to U.S. greenhouse gas emissions, accounting for 29% of total emissions in 2019. According to MIT research, on average in the United States, an electric vehicle would emit about 200 grams of CO2 per mile, while combustion engine vehicles emit 275 grams of CO2 per mile. With the gap in carbon footprint continuing to increase over time as electric vehicle makers become more efficient. From the above, PIF believes Rivian’s business has the potential to have a fundamentally positive impact on the environment.

Social

Rivian has a high Glassdoor rating of 4.3 out of 5 from over 300 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

Rivian has a net positive ESG impact. 

Comfort Rating

From Rivian’s business, financials, and ESG reviews, Practical Islamic Finance rates Rivian stock as: 

Comfortable to invest in from a Halal perspective.

Sources

Rivian S-1 

Rivian Reviews 

Sources of Greenhouse Gas Emissions | US EPA

Greenhouse Gas Emissions from a Typical Passenger Vehicle | US EPA  

Rivian Has Built 56 R1Ts As Of October 22 Or Two Vehicles A Day 

Rivian expands into fleet business beyond its ‘exclusive’ Amazon deal

Lifetime emissions of EVs are lower than gasoline cars, experts say