Rivian CEO sees annual production capacity of at least 1 mln vehicles before 2030

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DETROIT, Nov 10 (Businesshala) – Electric vehicle startup Rivian Automotive Inc. (RIVN.O) plans to build at least one million vehicles annually by the end of the decade, its chief executive said Tuesday, as it sets its sights on the market. sets up. Leader Tesla Inc. (TSLA.O).

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Rivian CEO RJ Scaring said the company’s large global footprint would make up for it, supported by four assembly plants around the world.

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“We’d better be growing at least that fast, certainly how we think about it before the end of the decade,” Scaring said in an interview on Nasdaq ahead of Rivian’s market debut on Wednesday.

Irvine, Calif.-based Rivian said it expects to raise about $12 billion in the largest ever initial public offering (IPO) in the United States. Prior to the IPO, Rivian had raised $10.5 billion since the beginning of 2019 from Amazon.com (AMZN.O), Ford Motor Co and other investors including T. Rowe Price (TROW.O) and BlackRock (BLK.N).

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The IPO follows in the footsteps of several other EV startups that have gone public in the past year through reverse mergers with special purpose acquisition companies (SPACs). Rivian, other startups and established automakers are racing to take on Tesla as pressure mounts in regions including China and Europe on automakers to eliminate vehicle emissions.

Rivian has a plant in Normal, Illinois, and has announced plans for a second US factory, as well as eventually plants in Europe and China. It has not provided a location or time frame for the second US plant.

The Illinois plant currently has an annual capacity of 150,000 vehicles and Rivian has said it intends to increase that to 200,000 by 2023 as it adds new vehicles.

Rivian is building the R1T pickup truck, and will soon add an electric commercial van along with the R1S SUV for Amazon.com (AMZN.O), the company’s largest shareholder with a shareholding of about 20% . Ford Motor Co (FN) has a stake in Rivian which is over 5%.

Rivian has sold its R1 lineup in 2023, but Scaring said these vehicles are just the beginning as it expands its lineup.

“It really serves to open up our brand umbrella, under which we can add a whole host of different products, different form factors, different segments, different price points, lower price points, and much more in the same way we do. commercial van space,” he said, going on to explain how low Rivian would be in pricing.

The starting price of the R1T is $67,500.

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In addition to consumer vehicles, Rivian has a contract to build 100,000 electric delivery vans for Amazon by 2025. Under the deal, Rivian will exclusively provide last mile vans to Amazon for four years, with further rights over the next two years, but Scaring insists that still be including cargo, mid-mile, commercial vans and work vans. Leaves opportunities for Rivian in other segments.

Scaringe said the Illinois plant line, dedicated to manufacturing Amazon vans, was also designed to manufacture other vehicles.

“We’ve designed the line to put head room above and beyond Amazon’s needs,” he said. “That’s what allows us to go into some of these other places within the commercial van space.”

Scaring also said he does not plan to increase his social media presence to match that of Tesla CEO Elon Musk, whose posts on Twitter are heavily followed. He added that Rivian’s marketing focus will be on customer events and experiences.

Reporting by Ben Kellman and Paul Leinert in Detroit


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