Rivian, an electric vehicle maker, is adding investors. Rivian’s investor base currently includes Ford Motor and Amazon, who provide additional support to the company, which may result in Rivian becoming a strong competitor to Tesla and other EV makers.
Michigan-based Rivian announced that automotive services firm Cox Automotive would make an equity-based investment worth $350 Million. This is Rivian’s third announcement regarding investment in 2019. Amazon had a deal worth $700 million in February, followed by Ford’s investment of $500 million in April. After Cox Automotive, the company would have total investments exceeding $1.5 billion in 2019 alone.
Rivian founder and CEO, RJ Scaringe said that they’re building an ownership experience which matches the consideration and care that they put while making their vehicles. Cox’s global footprint, retail technology platform, and their service and logistics capabilities are some areas where Rivian can benefit from this partnership.
None of the companies commented on the amount of equity Cox Automotive would receive in this deal.
Rivian acquired a manufacturing plant in 2017 and plans to produce vehicles there. This plant, in Normal, Illinois, was previously used by Mitsubishi Motors.
The company started with two all-electric vehicles – the R1S SUV, and the R1T pickup. The company said that future deliveries would be in 2020 and four additional products would be added to the portfolio by 2025.
According to Rivian, the EVs are expected to last 400 miles on a single charge. These cars would offer a superior combination of off-road and high-performance experience.
stablished automakers and startups alike are focusing on the electric SUV as a new primary market. Ford and GM have announced that they’re working on such vehicles, while Tesla is expected to unveil a pickup EV later this year.
Cox Automotive is a subsidiary of Cox Enterprises which is known for consumer brands like Manheim and Autotrader. While Cox has invested in automotive firms previously, this is the first time they’ve bet on a vehicle manufacturer.