Rivian's successful quest for capital

[renf]

Rivian appears to be doing well in raising the funds they need
to produce electric trucks. Yesterday, there was an announcement about a substantial investment from T. Rowe Price. So far it looks like they have raised capital as follows:

Cox Automotive $350 million
Ford $500 million
Amazon $700 million
T. Rowe Price $ 1.3 billion

The Japanese firm, Sumitomo, has also invested as have some Saudi funds. There were rumors that GM was going to invest but I think that did not happen. They have taken over the former Mitsubishi plant in Normal but are headquarted here in Wayne County. Apparently, they are willing to accept a $1000 down payment on an electric truck that may sell for
$69,000.

Will Rivian be the first to the market with a new generation of electric trucks? Detroit sure does remain axis mundi for the world's vehicle industry.

[Johnnny5]

I kinda view it as investing in RD,the problem with EVs now is they can carry thier own weight but when you add an outside load as you would with a truck the battery rate drops in half.

This is only a problem for the people that actually intend to use their high end pickup trucks as pickup trucks. Fortunately for Tesla and Rivian the percentage of people that will be purchasing their pickup trucks to haul heavy loads [[Or any loads at all) isn't all that high. They're destined to be the new status symbol taking the place once held by the Cadillac or Mercedes sedans, and more recently by large gas powered SUVs.

With some luck battery technology will advance sufficiently to make the range and towing capabilities suitable for the general market. But I'm not so sure that will happen before the cheap money runs out and bankrupts all of them.

[Richard]

I kinda view it as investing in RD,the problem with EVs now is they can carry thier own weight but when you add an outside load as you would with a truck the battery rate drops in half.

I could see a use for the small size Japanese “trucks” as EV for urban city deliveries,just would not want to be in one if it gets hit.

Many countries are flat out banning vehicles within the city limits,the UK is implementing a diesel phase out after convincing the public that it was the way to go and many traded thier gas cars out.

They are kinda putting the cart before the horse,if one lives in the city and has a 500# delivery,what do they do? Get 6 people to pick it up and carry it 20 city blocks.

It is forced change and it is coming fast,$69,000 currently buys you a real truck like a 250 super duty that will work all day long pulling loads on a tank of fuel,this truck is paying $69,000 to say I have a truck and am saving the planet.

At this point,useless as pits on a bull,but from an RD aspect and agreed it is gearing up Detroit to be the center of EV advancement,and kinda locks its future position in.

GM had an EV many years ago,they crushed them after the testing process but 30 years later and even 100 years later it still boils down to the battery technology.

Most small and medium businesses use pickups and there are many small interstate freight related transport companies,no way at the current levels would they be able to work and survive stopping every 300 miles or less for a recharge.

What is interesting is people run out of gas on the side of the road all of the time,so what does a future tow truck look like?

A truck set up as a portable charging station with battery packs that are recharged by a fossil fuel generator,so when you are stranded because you batteries died in route you can pay $150 for a battery truck to come out and give you a charge.

For a Level 1 charger, the cost of the station will be $300 to $600, with parts and labor costing $1,000 to $1,700, according to HomeAdvisor. A Level 2 charger will cost a bit more: The station will cost roughly $500 to $700, and the parts and labor will likely cost $1,200 to $2,000. The installation process could cost more if your main point of charging will require major electrical upgrades.

[Richard]

This is only a problem for the people that actually intend to use their high end pickup trucks as pickup trucks. Fortunately for Tesla and Rivian the percentage of people that will be purchasing their pickup trucks to haul heavy loads [[Or any loads at all) isn't all that high. They're destined to be the new status symbol taking the place once held by the Cadillac or Mercedes sedans, and more recently by large gas powered SUVs.

With some luck battery technology will advance sufficiently to make the range and towing capabilities suitable for the general market. But I'm not so sure that will happen before the cheap money runs out and bankrupts all of them.

Like what happened in the solar industry and wind farms,agreed it is all well and good until the grants dry up.

To me the elephant in the room is everything we touch is transported in one way or another there is a massive commercial aspect being overlooked.

The US in itself is massive when compared to other countries that are smaller then some states.

I remember growing up when the only people that had a truck for the most part was the commercial aspect,to me if you cannot fit a 4x8 sheet of plywood in the back it is useless,which is 95% of the current trucks.

I agree,profiting from ones ego seems the way to go.

[iheartthed]

Rivian is setting itself up to eventually be acquired by one of the Detroit automakers.

[bust]

The market isn't bricklayers, and suburban egoists will be only a small secondary market -- at least until the technology is mature. The primary market is local delivery. That's why Amazon is interested. They'll drive short distances and their cargo won't be heavy. Cardboard boxes, air pillows, bubble wrap, and your new tech gear. A gift for your niece. Maybe your groceries.

[EGrant]

"Horseless carriages? That'll never catch on! Nothing beats the reliability, speed and strength of my trusty steed!"

[renf]

When I was a child in 1946, there was much discussion about large changes in the vehicle industry right after World War II. Producers knew there was a great pent up demand since few cars had been since 1929.

There was much speculations about new firms producing cars. Eventually Crosley produced about 25,000 before quitting. Kaiser Frazier produced over 300,000 cars and then collaborated with Willys. Playboy assembled about 96 cars in Buffalo and Tucker 49 in Ypsilanti.

Willys returned to auto production in 1952 and began selling their four-cylinder Aero. After they were purchased by Kaiser-Frazer, their Toledo plants assembled about 82,000 Henry J’s and 2400 Allstates for Sears Roebuck. There was also discussion about whether any of the firms that survived into the Depression could resume production including Graham-Paige, Auburn and Cord.

Are we at a similar point with regard to electric trucks? Rivian has the capital and modern plant to start producing trucks. There are stories that Amazon may have agreed to buy 100,000 electric trucks from Rivian. That sounds like a large number but that is less than three months production at the Ford F-150 plant in Dearborn.

Amazon also invested heavily in an aspiring San Fran area firm, Aurora Innovation That firm hopes to design and produce thousands of robotic delivery vans.

There is a Bollinger truck firm here in the Detroit area that will take a $1,000 deposit on an electric truck they hope to sell for $57,000. I think that have hand-assembled a few.

Mahindra is turning about one thousand of their off-road jeep like vehicles in Auburn Hills every month. They apparently intend to bid on a postal service contact for 70,000 electric trucks with 90% US content. Supposedly Mahindra has an option on the former Buick City facility in Flint.

Lordstown Motors, the offspring of Wheelhorse, will also take a down payment on an electric truck they hope to produce in the Ohio plant that President Trump tried to save.

Ford has not only invested in Rivian but obtained a federal loan to rehab the Dearborn plant for the production of electric trucks.

And there are stories GM could invest as much as three billion to upgrading the Hamtramck plant for electric trucks.

Tesla has already displayed their Cybertruck but I have seen no information about when it will go into production. Clearly Ford, GM, Mahindra and Rivian currently have the capital to stick around in the electric truck business for a while.

Does anyone have insights about what may happen next?

[Lowell]

I think it all hinges on battery range. It does for me when I contemplate a next generation vehicle when it becomes time to move on in a few years. And, sorry, but I expect at least a 400 mile range on a charge.

I think the breaking point for most folks will start around the 300 mile and up range.

On the other hand, with so many convenient app-driven ride sharing, car pooling and rental options, could this also be the end of the two car household, or even the coming of the no car household?

We are in a phase a bit like shipping was while transitioning from sail to steam. That started with hybrids too.

Big disruptions in transportation are here.

But all this does have me rebalancing my meager investment portfolio toward electric power generation companies.

[iheartthed]

Rivian is setting itself up to eventually be acquired by one of the Detroit automakers.

If this wasn't obvious before, it definitely should be now:

Rivian, a Michigan-based startup backed heavily by Ford and Amazon, will develop a new electric vehicle for Ford's Lincoln luxury brand.

This will be Lincoln's first fully electric vehicle, although it has already unveiled two plug-in hybrid versions of its Aviator and Corsair SUVs. Plug-in hybrids have gasoline engines, but operate as fully electric vehicles for relatively short distances after being charged.

https://www.cnn.com/2020/01/29/cars/...ian/index.html

[renf]

This looks like an impressive achievement for Rivian. It sure is a major challenge to start a new vehicle firm. Rivian has raised the capital and now has a solid partner. Where will the new Lincoln be assembled? In order to retain their tax break from Illinois, I think that Rivian must employ a substantial number at their Normal plant.