Rivian Trucks Coming To A Road Near You
Rivian is projected to be a potential decacorn. So, this means a potential valuation above $10 billion. And some estimates by analysts on the street have reached $50 billion. Currently, the valuation stands at approximately $27 billion.
Now Rivian is looking to raise money from investors such as T. Rowe Price, Ford, and Amazon. A number of these investors are already a client.
Rivian seeks to penetrate the lucrative electric pickup truck and transport van market. The company has begun accepting preorders for its two models, the R1T, and the R1S. Now Rivian plans on beginning deliveries in January 2022.
Rivian is looking to establish themselves as a respected participant in the auto market. But, this will require a greater manufacturing capacity. Recently, they have begun accepting bids from a number of states for the opening of a second manufacturing plant.
Rivian’s first established manufacturing plant belonged to Mitsubishi. But, that plant only had a production capacity of 200,000 vehicles per year. The anticipated second plant is expected to have a much greater manufacturing capacity. Furthermore Rivian hopes to produce battery cells in the plant as well.
The estimated total cost of this project is topping $5 billion. The average electric vehicle production plant has a much lower $1 billion price tag. And the average battery cell plant costs $2 billion. The potential production capacity is still unknown.
However, the plant would greatly help by vertically integrating Rivian’s business model. Rivian is currently outsourcing the production of battery cells.
Electric pickup trucks and transport vans would directly compete with Nikola’s proposed hydrogen fuel cell-powered pickup trucks. Howerer, Nikola’s trucks haven’t even hit production yet. And Rivian also plans to compete with the likes of Volkswagen through the manufacturing of smaller cars, more prevalent in European markets.
Rivian has yet to release the number of preorders put in place. But, the need for larger production capacity has given off a strong impression on investors as Rivian was recently able to raise another $2.5 billion in the last week.