According to Reuters, both Amazon and General Motors are looking at taking minority stakes in the Michigan-based automotive startup. Based on comments from people familiar with the backroom financials, the investment would value Rivian at between $1 billion to $2 billion.
If all goes according to plan, an announcement from the two companies could be made as soon as later this month. While Amazon declined to comment on the report, a representative for General Motors stated, “We admire Rivian’s contribution to a future of zero emissions and an all-electric future.”
An investment by General Motors isn’t exactly out of left field; the company produces the all-electric Chevrolet Bolt, which costs around $37,000 before tax credit and can travel just shy of 240 miles per charge. The company has also stated that it wants its Cadillac division to be at the forefront of electric vehicle development.
The investment by Amazon is a bit more curious, as the company up until this point has shown no real interest in electric vehicle platforms. Amazon is more known for its e-retail empire and its smart home aspirations. However, this could be yet another front for Amazon CEO Jeff Bezos’s friendly rivalry with Tesla CEO Elon Musk. Musk also helms rocket company SpaceX, while Bezos is the head honcho over at competing firm Blue Origin.
The Rivian R1T drew plenty of attention for its reported specs, which include a flagship model with four electric motors, 750 horsepower and a 400-mile range. A vehicle with this spec can hustle from a standstill to 60 mph in just three seconds. The vehicle uses a “skateboard” platform that houses the drive units, battery pack, and suspension components lower to the ground to improve the center of gravity.