One of the newest electric vehicle startups, Rivian Automotive Inc., is planning construction on a $5 billion factory in Georgia. By beginning construction next year, Rivian is making a statement about its expected sales growth. The Rivian electric vehicle plant will cost $5 billion and is a high-risk bet to place on steady sales growth over the next few years. Although so far, it seems like the demand for the Rivian R1T pickup truck and Rivian R1S SUV is massive.
Rivian electric vehicle plant costs $5 billion
According to The Wall Street Journal, Rivian raised nearly $13.5 billion from its enormous IPO last month. At least $5 billion of that will be used to build a factory in Georgia that will heavily increase production. The new Rivian electric vehicle plant will produce 400,000 vehicles annually. In addition, the factory will bring around 7,500 brand new jobs to the area.
Rivian’s initial public offering raised more money than any other U.S. listing since 2014. To say there’s a lot of hype around the electric vehicle startup would be an understatement. Wall Street values Rivian more than Ford Motor Co., which is valued at $77.4 billion. This is strange because, according to WSJ, the startup is losing money.
Rivian, electric vehicles are the future
Along with Tesla, which received an evaluation of more than $1 trillion, Rivian is proof that electric vehicles are the future. At the very least, it shows immense optimism around the car market’s shift into EVs. Consequently, the switch to electricity has opened opportunities for established automakers and new ones alike. More startups like Rivian will get massive evaluations, and we already know virtually every well-known automaker is making EVs.
Rivian recently reported its first set of financial results since it went public. Third-quarter revenue was $1 million, from its first vehicle sales in September. Launching and developing electric vehicles is very costly; however, Rivian’s net loss is up to $1.2 billion, compared to $288 million at the same time last year.
According to WSJ, Wall Street has enthusiasm for “pure-play electric vehicle startups. Because traditional gasoline engine models do not tie them down, no matter how many electric vehicles Dodge makes, there will always be customers asking for the Hellcat back.
What’s so great about Rivian electric vehicles?
The Rivian electric vehicle plant will cost $5 billion, which means it has to be worthwhile. What’s so great about Rivians that the company would confidently spend that kind of money to ramp up production?
Not only are Rivian’s vehicles environmentally friendly, but they’re also ridiculously capable. The compact R1T pickup truck has an EPA estimated 314 miles of driving range, 3.0 seconds 0 to 60 mph time, and it comes with quad motors and all-wheel drive. Not to mention, the fully-electric pickup truck can tow up to 11,000 pounds.
That’s not a typo; the Rivian R1T can tow more than the Toyota Tundra, Nissan Titan, and GMC Canyon. It’s also remarkably close to some of the most popular pickups in the world. For instance, the Ram 1500 can tow just 1,750 pounds more.
Lastly, the Rivian R1T and R1S are unique. The vehicle’s exterior resembles that of a vintage pickup truck in some ways, especially the headlights. They’re unlike anything you’ve seen before. Similarly, the Tesla Cybertruck made its entire design look like something you’ve never seen before. For both automakers, straying away from the norm is a risk, but it seems to be paying off.
The Rivian R1S is being delivered to customers
Specifically, the R1S, Rivian’s SUV, is being delivered to customers in the last few days. December 2021 launches the first deliveries of the vehicle, presumably with the R1T pickup truck to follow. According to Inside EVs, the company delivered just two R1S models, which could’ve been to employees, but that is unknown. Inside EVs reiterates that the projection for this year from early November is just 25 produced and 15 delivered, so don’t expect many more to go out.
Rivian is proving to be wildly successful already, even if it hasn’t come in the form of profitability. Investors and customers alike love the products and have shown it financially. The brand new Rivian electric vehicle plant is the next step for the brand. Ramping up production means more sales, and more sales mean more success. It’s challenging for a startup like Rivian to become profitable, but it’s even more difficult without the ability to produce its vehicles at a high volume.