Amazon’s beloved electrical company Rivian has gone public
After last week, Rivian filed for an initial public offering. The 12-year-old electric car maker, backed by Amazon and considered one of the biggest threats to Tesla, wants to be valued up to $ 80 billion. That would make Rivian one of the most valuable automakers in the world billions more than Ford or GM – and its trucks are not yet on the road. Rivian’s first car, a $ 73,000 pickup, is expected to begin shipping in September, and a second model, a $ 75,500 seven -seat SUV, would have been released next year.
In some ways, Rivian’s timing is good. President Joe Biden recently issued an executive order calling for electric vehicles for half of all new car sales in the United States. in 2030, and a growing number of legacy automakers are committed to shifting their production in electric vehicles over the next two decades.
But as the world continues to struggle with the pandemic, Rivian faces some serious challenges. The shortage of semiconductors has caused delays and stoppages in production throughout the industry. Neither does that multiple charging stations available throughout the United States, leaving some potential EV buyers worried about losing juice.
“It’s a great deal to have a lot of public infrastructure available,” Jeremy Michalek, a professor of the public policy profession at Carnegie Mellon, told Recode. “Perhaps the first priority is to make sure there are enough fast chargers available at highway rest stops so you can take your car wherever you want to go.”
Like Tesla, Rivian is the same selling home chargers and developing a national charging network. The company plans to have 10,000 stations available by the end of 2023, with most going to remote areas. Just as Tesla did, the Rivian brings an AI-focused approach to its vehicles. Rivian has invested heavily in its left-handed, semi-autonomous driving technology with a suite of features called Driver +, which sounds similar to Tesla’s Autopilot. In a lawsuit, Tesla even accused Rivian of stealing its trade secrets after hiring its employees in the past.
But one big difference between Rivian and Tesla is the class of electric cars sold by the two companies. After being founded in 2009 and remaining hidden for many years, Rivian announced in 2018 that its first models were a pickup truck and an SUV that was for off-road driving. That’s a notable difference from Tesla, which focuses primarily on selling cars and croszers. (Tesla announced the first pickup truck, the Cybertruck, in 2019, but the lasted until 2022.)
Rivian also attracts commercial clients, including its own influential supporters. After participating in two rounds of funding for the startup, Amazon last year committed to purchase 100,000 power delivery vehicles from Rivian in 2030. Former Amazon CEO Jeff Bezos and three other passengers on the first flight of Blue Origin with people aboard though riding in a Rivian SUV at the launch site.
Ford, which has its own plans to release an electric version of the popular F-150 pickup truck next year, has also invested more in half a billion dollars to start the electric car.
The tough time of Rivian’s IPO
There is no doubt that President Biden is enthusiastic about electric cars. The Biden administration has already begun electrifying entire fleet of federal cars, SUVs, and trucks, more than 600,000 vehicles. Meanwhile, the White House and Congressional Democrats are pushing for the Postal Service purchase of up to 165,000 electric delivery trucks. Biden also wants to spend $ 174 billion to produce 500,000 electric chargers across the country. (Tesla CEO Elon Musk has also promised to open Tesla Superchargers to electric vehicles from other manufacturers.)
But as EVs become increasingly popular around the world, the U.S. is facing much slower growth than China or Europe. Last year, sales in the world of electric cars grew by 41 percent, endorsed by the International Energy Agency, an intergovernmental energy policy advising organization. While sales of U.S. electric vehicles are behind those in China and Europe, sales of hybrid cars grew, a sign that many consumers may be heating up electric cars on line.
In a in a recent Pew survey, some 7 percent of Americans say they own an electric or hybrid car, and 39 percent say they would consider buying one. The higher price of EVs in fact a causal factor at a slower rate of US adoption. But the price of battery, which is most expensive part of electric vehicles, fell, so that Americans will see more affordable EVs in the future.
Barriers during the pandemic also damaged the auto industry. Rivian, which originally released its pickup truck in July, has twice suspended delivery of vehicles. Late last month, Rivian founder and CEO RJ Scaringe told customers there were warning vehicles that Covid-19 disrupts everything from “facility construction, to equipment installation, to the supply of vehicle components (especially semiconductors).” The same chip shortage was forced on Tesla also write code for its vehicles, and experts are concerned that the lack of semiconductors could delay the production of the new electric Ford F-150.
However, if Tesla’s past success has any indication, Rivian stands out to find enthusiastic, people outside customers who want an EV to get out of the way. Considering today’s challenges, the company has a hard time relying on standing apart from Tesla and the growing number of legacy automakers who want a cut in the EV market. The Jeep IMMINENT to release an electric version of his Wrangler in 2023. President Biden has already given one a test drive.