Rivian set to disrupt the EV market with another $1.3 Billion Investment
According to data from S&P Global Market Intelligence, Rivian Automotive set up shop back in 2009. While the company is yet to begin operations, it has announced plans to begin selling its first two electric trucks – the R1T pickup truck and R1S SUV, in late 2020.
Kelley Blue Book has advised that both models will take a minimum of five passengers, with the R1S having an optional three-row, seven-passenger setting. Both vehicles will be rated for between 300 and 410 miles when fully charged, allaying consumers’ range anxiety.
The vehicles are also designed to have significant towing capacity, approximately 11,000 pounds for the R1T and 7,700 pounds for the R1S. They are also predicted to go fast when not towing a boat or camper, with acceleration from 0 to 60 in just three seconds.
Rivian’s trucks are not expected to come cheap, with the R1T predicted to be priced at $69,000 while the R1S at $72,500.
Rivian and its money
Rivian has already attracted an investment of $700 million investment from a consortium led by Amazon.com. Subsequently, Rivian was awarded a contract to produce 100,000 electric delivery vans. The vans are specially designed for Amazon, with delivery scheduled to begin in 2020 or 2021, and continue through 2024.
The company recently won another $500 million investment from Ford, and an investment of $350 million from privately-held Cox Automotive. These investments are enough to turn around the fortunes of Rivian, making the brand a major player in the EV market. The recent investments have not been the only heads up that Rivian has gotten as the company won a bigger investment than Ford and Amazon’s combined in the waning days of December.
On Monday, December 23, the electric truck manufacturer secured a $1.3 billion investment from “funds and accounts advised by T. Rowe Price Associates, Inc.” The huge investment helped to boost the books of the company, with Rivian ending the year with close to $3 billion in new funding.
With the company already having a production plant to build in Mitsubishi’s old plant in Normal, Illinois, the $3 billion should be enough cash to develop the three closely related truck/van models that have been revealed so far. According to autoblog.com, the average cost to develop new cars is about $1 billion per model.
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