The car industry is firmly divided into two camps: the old and the new. In the recent era of electric vehicles, with Tesla at the top of the pack, exuberant valuations have been attributed to their status as “new and distinct.” The stock prices of established automobile manufacturers indicate that they will go out of business in the near future. Nonetheless, several of the former will almost certainly fail, while the majority of the latter will almost certainly survive. Rivian, one of the entrants, submitted paperwork for the initial public offering (IPO) on August 27th and is apparently seeking a valuation of at least $70 billion, which is nearly the same as that of General Motors, according to media reports. Are its plans in sync with the excitement?
At first sight, the company’s reputation as among the most promising electric vehicle startups may appear to be warranted. Rivian has raised more than $8 billion from distinguished investors, such as Amazon and Ford. According to the e-commerce giant, 100,000 electric vans have been bought, with the first 10,000 expected to hit the road in 2022. Rivian is searching for the location for a new plant that, when combined with its existing facility in Illinois, could produce 300,000 automobiles per year total.
Commercial electric vehicles (commercial EVs) are in high demand as e-commerce continues to thrive, boosted even more by the epidemic, and cities around the world enforce increasingly stringent emissions regulations. The Skateboard chassis of Rivian, on which a “top hat” of any body type may be mounted, enables it to quickly and easily tailor delivery vehicles to meet the exact requirements of individual customers. It will also serve as the foundation for the company’s upcoming truck and SUV models, and it may be sold to other automakers.
Established enterprises, on the other hand, who make substantial profits from van sales, will not surrender their market easily. Furthermore, Rivian is hardly the only newcomer to the EV van scene: Canoo of the United States and Arrival of the United Kingdom are both entering the fray. Canoo and ree, which is an Israeli startup, is one of many companies that are developing electric skateboards. A battery-fueled version of Ford’s iconic f-150 pickup truck (the f-series is the source of the majority of the company’s profits) will go on sale next year, and General Motors has similar arrangements for the Chevrolet Silverado pickup truck in 2023, according to Automotive News. Rivian has joined a company where the battle for survival has never been more intense than it is now.