Amazon was in the news recently after having to back down from opening a new HeadQuarter in New York, but that hasn’t slowed their flow at all. The company now back in the news for leading a $ 700 million dollar investment into electric truck manufacturer Rivian. Although how much of that 700$ million dollars comes from Amazon.com’s kitty, the round also saw investments from existing stakeholders and has announced that they will still remain an independent entity. The company presently employs 750 people across several locations including Plymouth, Michigan; San Jose and Irvine, California; Normal, Illinois; and Surrey, England.
The big question is what does this mean for Rivian, which Reuters has pegged to have an ultimate valuation of about 3 billion USD? Well, two paths lay in front of the company, it could be the next Tesla with a market valuation of 50 billion or the next Faraday, which has been riddled with doubt since its inception. Facts stand, that Rivian is yet to have a drivable car available on sale to the public. Understandable, since building any new car from scratch is a proposition that usually costs billions of dollars of R&D. Which is where the money is expected to go. The electric full-size SUV that they call the Rivian R1S, and a pickup truck version of called the R1T are both expected to launch next year. With 600 km of range, and electric motors capable of hitting three digit speed in a matter of a couple of seconds.
The next question is why Amazon is interested in Electric Cars, or Trucks for that matter? Well on the surface it would seem that Amazon is interested in the company to up the efficiency of the supply chain and retail enterprise empire that is the front of the company. Scratch a little in and you’ll realize that Amazon could have a range of interests in the company from media sharing to AWS. But all of that remains to be seen, what we do know is that with Amazon’s money nestled in the company’s coffers Rivian now stands a strong chance of survival.