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Everything you need to know about the Tesla rival and Jeff Bezos-backed Rivian and its upcoming IPO

Rivian
Image credits: Rivian

Today, the whole world is operating off animal- and plant-based carbon accumulated for hundreds of millions of years. Taking our current way of life, the stored energy will be exhausted in just a few generations.

EVs can bring a transformation

A big trend reshaping the automobile industry is the electrification of transport. One of the most efficient methods to prevent carbonizing our atmosphere any further. However, individuals and industries have to come together in several ways to make this possible and make the world sustainable. This is where US-based Rivian’s potential lies as it creates solutions that will revolutionize the auto industry.

Rivian’s timing is good as it has hit the headlines sometime when President Joe Biden issued an order calling for EVs to account for 50 percent of all new auto sales in the US by 2030.

For established automakers, it is neither easy to anticipate and check all the boxes of consumers’ wishlists nor to mass-produce vehicles while retaining proper fit and finish. The company is in a position wherein it aims to bring the first electric trust to the US market.

Started in 2009 as Mainstream Motors and became Rivian in 2019, the company has undergone explosive growth in many ways. Now, the company has delivered the electric truck that the US auto market has been waiting for. Coined Rivian RT, this electric truck has been launched months after the EV maker raised more money than any other private EV startup announced that it will go public.

Rivian R1T: No small feat!

Rivian was tight-lipped for years before it showcased the prototypes of its all-electric R1T truck and R1S SUV at the 2018’s LA Auto Show. Seeing what the company has accomplished with the R1T, it is clear that it is no small feat. The electric truck is of the right size without being too small or big. It handles off-camber trails and rock crawling with ease and can reach up to 60 miles per hour on a dirt road within a few seconds sans any back-end slippage. It can go through windy mountain roads seamlessly.

Being a rugged electric truck, the offering from Rivian features premium interior and exterior finishes. Designers and engineers have helped the truck steer clear in build and functionality, along with added features that show that they have tested it in real-world scenarios such as camping, mountain biking, and more.

Be it any season or any task; the Rivian R1T is a joy to drive. Already, several positive reviews have started pouring in for this electric truck. While the EV maker has come up with a great offering, its challenges lie in production and delivery. R1T electric pickup truck’s first production line already kicked off this month at the Illinois factory of Rivian.

While the R1T truck has been delivered, Rivian is yet to deliver the all-electric SUVs. The company is expected to deliver this sometime in the coming months.

Massive investments in EV industry

What distinguishes Rivian from other EV makers is its exceptional roster of investors. The e-commerce giant Amazon has pumped in massive investments into the company. Also, there are other backers including BlackRock, Fidelity, T. Rowe Price and Ford Motor. In January this year, the company bagged a whopping $2.65 billion in a round led by T. Rowe Price Associates. With this, its overall investment crosses $8 billion since 2019. Recently, Ford Motor Co, which has repeatedly flaunted its partnered strategic relationship with Rivian, announced that it is no longer a representative on the company’s board of directors.

Rivian has a valuation of $50 billion, thereby placing it in line with traditional automakers all over the world. To mention a few, Ford’s market cap is $47 billion and that of General Motors is $80 billion. However, Rivian is far from Tesla, the first brand most of us can think of when it comes to EVs, which is valued at a whopping $800 billion.

Despite being an investor, Amazon is also a customer for the EV maker. Rivian is developing an electric delivery van for the e-commerce giant that has ordered 100,000 units that will be churned out in the coming years. The company plans to deliver the first of these electric delivery vans this year.

Just a few days back, William Shatner, Star Trek’s Captain Kirk hit the headlines as he is all set to launch into space on a Blue Origin rocket. The astronauts took a Rivian truck to the launch site and Jeff Bezos drove them. Rivian made an appearance because Blue Origin and Rivian are connected.

A few months back, Robert R.J. Scaringe, the Rivian founder filed confidentially for an initial public offering, eying to reach a potential valuation of $80 billion.

Rivalry with Tesla

It is pretty difficult to envision a company that is in parity with Tesla. If there is any, then Rivian could be the next Tesla. It is expecting to cash in on the possibility that was identified years back by Tesla. However, it is different from the Elon Musk company, which sells sporty sedans. Given that Tesla is already come up with an angular and futuristic pickup vehicle called Cybertruck in 2021, the Rivian R1T could compete head-on with it. But the huge difference is that Rivian and Tesla are selling two different types of EVs.

The new EV maker on the road is yearning to make itself stand apart from Tesla and other legacy automakers who want to have their slice of the market.

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