Rivian Automotive And Tesla’s Worst Nightmare. All you want to know

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RIVIAN Automotive received an insane sum in different rounds of funding till date. Let’s get to know everything about Rivian

The Rivian Automotive: Michigan, US based electric pickup truck manufacturer the Rivian Automotive made the announcement about new funding on 23rd December 2019. The company received $1.3 billion in a new funding round led by T. Rowe Price Associates, Inc.

History of different investments made into RIVIAN

December 2019, funding amount: $1.3 billion

September 2019, funding amount: $350 million by Cox Automotive

April 2019, funding amount: $500 million by Ford Motor Company.

February 2019, funding amount: $700 million by Amazon.

Along with above mentioned funding, The Rivian Automotive earlier also received the huge investments from London’s Standard Chartered Bank ($200M), from Sumitomo Corporation of America and Abdul Latif Jameel, a Saudi Arabian Automotive conglomerate.

Rivan had acquired Mitsubishi Motors manufacturing plant in Normal, Illinois in 2017. During that period Rivian had also received a $1 million grant and a five-year tax abatement from Normal contingent.

In , the state tax credit is one of the major benefits which any electric vehicle manufacturer receives from the Government. The company has also received $49.5 million in tax credits with the deal of making at least $175 million investment in US by 2024.

Strategy behind these investments

Above mentioned all the investments were very strategic and purposeful. In other words, the investment made by Amazon was not only limited to the $700 million. Amazon collaborated with the Rivian to develop the electric delivery van by utilizing Rivian’s proven Electric Powertrain platform. Amazon has ordered 100,000 of electric delivery vans for its e-commerce business transport. Delivery is planned to start in 2021 only.

Similarly, the Ford Motor Company invested $500 million, but this deal was not limited to one way investment. Ford and Rivian will collaborate to develop an electric vehicle (project details yet not public) by utilizing Rivian’s skateboard electric platform.

Cox Automotive has put $350 million in the Rivian Automotive for expanding its own logistic and fleet service business in the future. The Rivian will also be benefited because Cox Automotive has specialties in logistics, fleet management, service and digital retailing. So, for like Rivian it will be a great support in the future to cater its vehicle delivery and service work to its Cox Automotive partner.

RIVIAN Automotive History

The company started on April 4, 2009 by Robert Scaringe. He has a doctorate in mechanical engineering degree from MIT. After completion of his studies, he well used his knowledge to bring his high school time obsession to build his own brand into a reality. Initially the company was with the name of ‘Avera Motors‘ but later in March-2011 it is changed to “RIVIAN Automotive“.

‘Avera Motors’ became ‘Rivian Automotive’

In initial days only Avera Motors (Rivian) faced the legal issue from Hyundi. Hyundai claimed that the – an amalgamation of the words “America” sounded too similar to one of its popular sedan- The Azera. So, to avoid any legal works company renamed itself to Rivian Automotive and kept its prime focus on developing a luxury electric SUV/truck.

R.J. Scaringe, the founder and CEO of Rivian Automotive love the nature and also very concern to conserve it. The company’s current name “Rivian” actually “pays homage, in part, to the Indian River Lagoon“.

RIVIAN Automotive R1T and R1S
(Tesla’s Worst Nightmare)

Recently, Tesla unveiled its one of the most secret innovations- Tesla Cybertruck. A complete off-roader with a next level of build quality and technology incorporated into that. Tesla cybertruck offers a great value of money and brand image at a very competitive price. Quickly you can check out the technical specification of the all three models of Tesla Cybertruck below-

Tesla will start the delivery in the last quarter of 2021 but here is the real game. Revealed back at the LA Auto Show in late 2018 the Rivian is Tesla’s real nightmare. Check out the technical specification of Rivian electric truck (R1T) and electric SUV (R1S). Rivian has the real R&D to develop its skateboard platform. In addition, working since 2009 to till date a lot of efforts have gone into the development of these electric trucks and SUV. The company has promised to deliver a world class luxury electric vehicle and to manufacture the same it’s ready with huge external investment of around $2.9 billion.

 

RIVIAN Automotive manufacturing facility

The major investment for any Automobile startup goes into building a manufacturing facility from zero. Therefore, to overcome this problem Tesla had purchased a massive production facility from GM/Toyota in Fremont, CA. So, in spite of investing multi-billion dollar in a new factory, Tesla acquired this GM/Toyota manufacturing facility in $16M. On the same pattern, In January-2017 Rivian acquired the manufacturing plant which was formerly owned by Mitsubishi Motors in Normal, Illinois. That deal was finally in $2 million. So, now the Rivian is ready to work on the final stage of their product.

Major players (Startups) in USA building EVs:

Other major startup players in US are like BYTON and LUCID. There is one more player which is based automotive company NEO. NEO is also having strong investment. But for electric truck, company backed up by Amazon and Ford Motor- the is said to be the real rival for the Tesla will start the delivery of electric truck by late last quarter of 2020. So, the performance will be the final parameter to decide the king of the electric truck market in the USA.

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