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Amazon leads $700 million investment round for Rivian

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Illinois

* It’s not the $2 billion they were hinting at, but it ain’t bad, either…

Rivian Automotive on Friday announced an equity investment round of $700 million led by Amazon.

“This investment is an important milestone for Rivian and the shift to sustainable mobility,” RJ Scaringe, Rivian founder and CEO, said in a statement. “Beyond simply eliminating compromises that exist around performance, capability and efficiency, we are working to drive innovation across the entire customer experience.”

He added that “delivering on this vision requires the right partners, and we are excited to have Amazon with us on our journey to create products, technology and experiences that reset expectations of what is possible.”

The investment follows Rivian unveiling its all-electric R1T pickup and R1S SUV at the LA Auto Show in November. Both vehicles will be produced at the company’s 2.6-million-square-foot manufacturing plant in Normal — the former Mitsubishi auto plant.

Customer deliveries are expected to begin in late 2020.

* CNBC…

The fact that GM was not included in Friday morning’s announcement does not mean the Detroit automaker won’t subsequently take a stake in Rivian. GM issued a terse release earlier this week that notably sidestepped the question, only stating that “We admire Rivian’s contribution to a future of zero-emissions and an all-electric future.”

Until recently, few expected to see a competitive, battery-powered electric pickup because of the hefty demands owners place on those vehicles. But views have begun to shift as Tesla prepares to bring a truck to market and as analysts and potential buyers have gotten a look at the R1T pickup that Rivian unveiled at the Los Angeles Auto Show last November – along with the R1S sport-utility vehicle.

Rivian plans to launch its R1T pickup truck and R1S sport utility in the U.S. in 2020, and begin introducing them overseas in 2021. The company has modeled both vehicles on what it calls a “skateboard” platform, which it says it flexible enough to accommodate several different vehicle body styles.

Both, at least initially, will feature 180 kilowatt-hour battery packs, almost twice the size of the largest pack currently offered by Tesla. That will be more than enough to deliver a range of 400 miles under optimal conditions, according to Rivian CEO RJ Scaringe.

posted by Rich Miller
Friday, Feb 15, 19 @ 12:18 pm

Comments

On this I was with Rauner. Why not but never expected this.
I got an auction brochure. Did they sell all the old car equipment? They had enough equipment to basically manufacture almost anything plastic or metal you could imagine.

Comment by Not a Billionaire Friday, Feb 15, 19 @ 12:24 pm
400 miles of range is good. We often hear those EV enthusiasts who say “the average trip is only 40 miles, you don’t need that much range”, but the people towing trailers in the summer and taking longer trips in the winter won’t put up with having to stop and sit several times for a 45 minute recharge during their errands. To make EVs appealing to the general populace, the advantages of IC engines must be counteracted.

Comment by Six Degrees of Separation Friday, Feb 15, 19 @ 12:31 pm
Taking a flier for 700 million. That’s what you call money to burn.

Comment by don the legend Friday, Feb 15, 19 @ 12:35 pm
Sounds good…. but given the track record of these guys, I’ll believe it when that $700 million translates into something you can actually see happening at that plant — like people producing vehicles and rolling them off the line.

The phrasing from Rivian is careful — “an equity investment round of $700 million led by Amazon” — and Amazon sure as heck ain’t bumming the drums loudly about whatever their stake is.

And — no state handouts for an alleged $700 million equity investment? Since when?

Hope for the best.

Comment by wordslinger Friday, Feb 15, 19 @ 1:23 pm
Glad they have moved on from sponging off of taxpayer to sponging off other businesses.

I can be skeptical and still be rooting for them at the same time, right?

Comment by Anonymous Friday, Feb 15, 19 @ 2:17 pm
=Rivian plans to launch its R1T pickup truck and R1S sport utility in the U.S. in 2020, and begin introducing them overseas in 2021.=

They sure sound like a traditional US car company, let the US consumer do our R&D testing.

Comment by Duopoly Friday, Feb 15, 19 @ 3:10 pm
John D’Amico filed a protectionist bill (2857) that requires a dealer network with a special carve out for Tesla. This will stop Rivian (or any future auto/tech companies) from selling direct to customer.

Nothing like using the law to protect your business.

Comment by Anonymous Friday, Feb 15, 19 @ 3:24 pm