Rivian is an electric car company that is quickly gaining popularity, but many people have lots of questions. The most common being, who actually owns Rivian? In today’s world with the vast length of investment chains and executives, it can be difficult to clearly know who owns things. Amazon is a known associate of Rivian and many people ask the question: is Rivian owned by Amazon?
Is Rivian owned by Amazon? Rivian is not entirely owned by Amazon but Amazon does own more than 5% of the company, says cnbc.com. According to hotcars.com, Amazon has invested 700 million dollars in the start-up electric vehicle company. In addition to the 700 million dollar investment, Amazon has made an order of 10,000 electric vans from Rivian, to be completed by 2030.
Though Amazon heavily backs Rivian, it is still a separate entity and isn’t “owned” in any way by Amazon. Rivian has created quite the collaboration with Amazon, going as far as implementing Amazon’s “Alexa” into Rivian vehicles. Many people don’t know the extent of the cooperation between Amazon. In this article, I’ll try to help clear up the association between Rivian and Amazon a little bit more.
The Ownership Of Rivian Explained
Rivian is currently a private entity and is not public at the moment. What that basically means is that currently, you can’t go buy shares for Rivian on the stock market. Rivian does have a large board that includes one of Amazon’s senior vice presidents, Peter Krawiec. Amazon owns a little more than 5% of Rivian. Amazon does not own Rivian, as there are many other people and companies that also have a part in this promising company. But Amazon certainly does have a promising future for being partnered with Rivian.
Amazon has various contracts with Rivian and is working very closely with them in the early stages of the company’s existence. Rivian has 17 investors, all of whom are contributing several different amounts of money. In total, Rivian has now raised over 10.7 billion dollars in funding, a huge amount of money for a company that hasn’t even begun to sell vehicles publicly yet. Rivian has been using this money to help fund its purchase and renovation of their giant production factory in Normal, Illinois, and also many other development projects that Rivian is working on.
Apart from Amazon, some of the lead investors include Ford Motor Company and T. Rowe Price. Ford, like Amazon, owns more than 5% of Rivian and has invested over 902 million dollars in the company. T. Rowe is an investment firm that has led to an incredible amount of funding for Rivian, over 1.3 billion dollars. For the most part, not much information has been shared on how much of the company is owned by investors. Even if they don’t specifically own parts of the company, there is still a large number of individuals and companies that Rivian is working with.
However, a big change in how Rivian is run will be coming soon. Rivian has filed for an IPO, which basically means that it will soon be on the stock market. Rivian will be coming onto the publicly traded market. This will allow any individual or any company to become partial owners of Rivian. Rivian will most likely be coming onto the stock market sometime in November, but the exact dates have not yet been announced. Amazon and Ford have already made agreements with Rivian to own a certain portion of the stock.
Rivian has a large board of executives that is full of experts in fields like engineering, business, marketing, and the car industry in general. Most of these members are people with impressive resumes that Rivian has recruited. They come from companies like Jeep, Tesla, and other automotive companies. Rivian does not lack experience when it comes to their executives and it would not be a surprise if all of these executives have a deal to receive a certain amount of stocks once Rivian goes public later this year.
Amazon’s Association With Rivian
As of today, Amazon has made an order of 10,000 delivery vans, which Rivian has already begun to manufacture. There is evidence out there to support the idea that Amazon will be purchasing even more vans in the coming years. Rivian and Amazon have an agreement where Amazon has complete rights to all Rivian commercial vans for 4 years. After that, Amazon will have the right of first refusal.
Amazon will most likely purchase a greater number of vans in the future and they even have the option of just buying drivetrains from Rivian and having other companies develop car bodies. Amazon has a really wide berth when it comes to the options of how exactly they want to interact with Rivian further on.
Amazon is also a very big investor in Rivian. Amazon has helped Rivian raise over 10.7 billion dollars in funding. Amazon has personally invested around 700 million dollars in Rivian and now owns more than 5% of the company. Amazon also has members of its company on the board for Rivian. This way, Amazon has a person on the inside of the company influencing decisions Rivian will make to directly benefit Amazon.
A big indicator of Amazon’s association with Rivian is that Alexa will be integrated into all of Rivians vehicles. Alexa is voice-controlled in the vehicles and can serve all the same functions as Alexa would in your home. Alexa will be able to make internet searches and relay certain information while you are driving. Rivian has even created their vehicles in a way where they can do over-the-air updates, so it would not be surprising if it reaches a point where Alexa can diagnose and notify passengers of issues with the car or things like slowdowns on current routes. Alexa is connected to the car and can control things like climate control and the sound system in the car.
Does Amazon Have Any Plans Of Buying Out Rivian?
Though Amazon is heavily invested in Rivian, there is no indication, as of right now, that Amazon has any plans of buying out Rivian. But Amazon may continue to invest and gain more ownership of Rivian. Amazon will already be holding at least 10% of Rivian’s public shares when Rivian becomes publicly traded in November. To date, Amazon has stayed away from the automotive business but it isn’t easy to say if they will try to break into the automotive industry or if they will continue to focus elsewhere.
Amazon does have plans to continue to order even more electric delivery vans from Rivian in order to create a giant fleet of electric vehicles. The Verge reports that Amazon has already announced plans to purchase over 100,000 electric vans from Rivian. Amazon can change its order in any way it wants until the vans receive government approval to drive on the road.
Other Big Companies Rivian Is Associated With
As mentioned earlier, other companies that have heavily invested in Rivian include Ford and T. Rowe Price. Other companies that have invested in Rivian include BlackRock Inc., Fidelity Investments, Soros Fund Management, Coatue, and Baron Capital Group. All of these companies have helped Rivian raise the 10.7 billion dollars it has raised in funding. Ford Motors, T. Rowe Price, and Amazon are definitely the three biggest investors and backers of Rivian.
Ford, like Amazon, owns 5-10 percent of the company and is also up to recieve a large percentage of company shares when Rivian comes on the public market. The interaction between Rivian and these companies will most likely continue in the future. Ford, though its own automotive company and even starting to create its own electric vehicles (like the F-150 Lightning), is still investing a lot into Rivian. Personally, I think this is a smart move for Ford, they are trying to create a partner out of Rivian rather than a competitor.
As Rivian continues into the future, I doubt there will be a lack of other companies who will want to hop onto the wagon and get a part of what Rivian is creating. Rivian is seen as Tesla’s greatest competitor and will likely continue to attract attention from other big-name companies. The Wall Street Journal also reports that General Motors also had a possible interest in investing in Rivian but was beat out by Ford.
There are reported discussions between GM and Rivian that took place in past years, but Ford ended up coming out on top and winning the collaboration with Rivian. Both Ford and GM have plans of putting a lot of money toward electric companies in the future, as the two have been investing in battery factories. Rivian actually plans on adding a new section to their factory in Normal, Illinois specifically dedicated to battery manufacturing and development.