Electric vehicle startup Rivian declared a $700 million funding round led by Amazon (NASDAQ: AMZN). The investment comes after the Michigan-based company divulged its all-electric R1T pickup and R1S SUV last fall.
“This investment is an important milestone for Rivian and the shift to sustainable mobility,” informed RJ Scaringe, Founder, and CEO of Rivian. “Beyond simply eliminating compromises that exist around performance, capability, and efficiency, we are working to drive innovation across the entire customer experience. Delivering on this vision requires the right partners, and we are excited to have Amazon with us on our journey to create products, technology, and experiences that reset expectations of what is possible.”
The R1T and R1S boast a range of 400 miles and are made to amalgamate performance, off-road capability and utility. Both vehicles are predicted to retail for upward of $68,000. They are produced in Rivian’s Illinois production facility, and the company expects to start customer deliveries in late 2020.
The product release sets Rivian in the position to directly compete with Tesla, which has already released an all-electric SUV and is working to design a pick-up truck.
Rivian, Founded in 2009 currently employees over 750 people and has development centers in Michigan, California, and England.
Earlier, Rivian raised about $500 million from Sumitomo, a Japanese conglomerate known for its tire division, and Saudi industrial group Abdul Latif Jameel, according to The New York Times.
On top of that, this investment round also included participation by those existing shareholders, according to company. Rivian did not disclose how much of its funding came from each investor.
“We’re inspired by Rivian’s vision for the future of electric transportation,” Jeff Wilke, CEO of Amazon’s worldwide consumer division, stated. “RJ [Scaringe] has built an impressive organization, with a product portfolio and technology to match. We’re thrilled to invest in such an innovative company.”
Despite Amazon’s investment, Rivian informed it will remain an independent company.