Automotive manufacturer General Motors and e-commerce firm Amazon have entered discussions to invest in US-based sustainable vehicle developer Rivian Automotive at a valuation of up to $2bn, Reuters reported yesterday.
The prospective deal would value the company at between $1bn and $2bn, people familiar with the matter told Reuters. The transaction would involve the corporates taking minority stakes and could be concluded this month, they added.
Founded in 2009 as Mainstream Motors, Rivian is developing an electric pick-up truck known as the R1T with a projected battery capacity of up to 400 miles on a single charge, that it expects to begin selling from 2020.
The company is also working on R1S, a seven-seat electric sports utility vehicle, and both will make use of an electric drive system with four independent motors providing 200 horsepower for each wheel.
Saudi Arabia-headquartered car distributor Abdul Latif Jameel (ALJ) is among Rivian’s existing backers and has agreed to provide $500m for the company according to Reuters, though the prospective valuation for the latest round suggests that would be in the form of debt financing.
Financial services firm Standard Chartered Bank provided $200m in debt financing for Rivian in May 2018, at which time it disclosed it had already received financing from ALJ and diversified conglomerate Sumitomo’s Sumitomo Corp of America subsidiary.
Image courtesy of Rivian Automotive LLC.
