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Rivian to Reach 50,000 Units in Annual Sales by 2025 by Manufacturing Adventure EVs and Licensing its Platform Technology
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Automotive market participants have realized that the future of the automotive industry lies in the direction of electric vehicles, and hence are investing heavily in developing their own electric vehicles. After the disruption initiated by Tesla, many startup companies are developing electric vehicles and challenging mainstreams original equipment manufacturers (OEMs) in various vehicle segments. Logistics and transportation companies are also moving their focus on adding energy-saving means to last-mile transportation options.Rivian is one of the EV startups with unique vehicle design, proprietary skateboard vehicle platform, battery technology and financial funding from big companies such as Amazon and Ford. The company gained a lot of attention from automotive companies when it showcased its electric pickup truck (R1T) and SUV (R1S) in the 2018 LA Auto Show. Rivian is both an automotive and technology company with a vision to change consumer perception of electric vehicles. Some of the unique features of Rivian’s vehicles are design, real off-road capabilities, 400+ miles range, and 0-60 mph acceleration in just 3 seconds. As of 2019, Rivian had secured nearly $2 billion in investment from global companies including Amazon, Ford, and Cox Automotive that reinsures the potential of Rivian’s technology to produce and retail a viable EV. Rivian targets a highly differentiated vehicle segment, pure electric pickup and SUVs, which are potential, new markets for mainstream OEMs as well as startups and the reason behind all the attention from automotive and non-automotive companies.The company will start delivering its first products i.e., electric pickup trucks and full-size SUVs in the last quarter of 2020. It has already secured 10,000 pre-orders. Additionally, Amazon has ordered 100,000 custom-designed electric delivery-vans from Rivian; this has ensured a cashflow for Rivian to continue its business. Rivian also has plans for its skateboard platform and battery technology. Its retail future plans include offering vehicle subscription services and other business models. All these make Rivian a potential company that can change the idea of sustainable transportation. Rivian’s importance in the automotive industry lies in its technology, product design, investor portfolio, and future business models.This OEM profile aims to understand and analyze Rivian's corporate strategy, as it targets a unique niche segment of the automotive market: electric sports/adventure vehicles. This study also analyzes its skateboard platform technology and its importance in future business models for Rivian. It also highlights investments from various companies such as Amazon, Ford, and Cox Automotive and its implications to them.The reader will benefit from a thorough analysis of Rivian’s product, technology, and growth strategies and how Rivian will impact the automotive industry globally.
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