The Rivian R1 electric vehicle will go into production in 2020 in a move that sets the stage for the company going public, according to Reuters.
The Rivian electric vehicle will go into production in 2020 in a move that sets the stage for the company going public, according to Reuters.
The electric truck, Rivian R1, has a small rear cargo capacity of just over 10 feet, compared to its main competitors in the so-called ‘electric industry’ which are models more than double the size.
This comes at a time when Elon Musk’s Tesla said on Monday that it would cut 7% of its global workforce in an effort to cut costs and achieve its target of achieving the gross margins of 20 percent, according to the SF Gate. Tesla has experienced rising costs in its battery factories and research and development costs, which have contributed to its financial woes.
“The Model 3 and other new products are doing well, but the economics of our major vehicle programs continue to evolve as we innovate and improve our processes,” Tesla said in a statement released Monday. “And while we anticipate generating substantial positive cash flow in 2019 and beyond, we are making these changes to achieve operating margin and positive net income earlier than planned.”
But the shift to battery-powered vehicles could go against the interest of the federal government which recently voted to move away from gasoline and diesel-powered vehicles in favor of more electric and hydrogen-powered.
The Rivian electric vehicle appears to hit right in the middle with its small cargo space versus larger units.
Electric forklifts are big business now, and think of all the steel cutting involved with those hefty rack and beam machines that lift and move bulk items. They are expensive to own and keep on track and up to four miles per hour when operating.
A Rivian electric truck, on the other hand, could run at an average of nearly 20 miles per hour and would only require battery power for short bursts as opposed to the heavy hybrid truck that runs for long periods of time.
Rivian is reportedly seeking a valuation of more than $50 billion for its initial public offering (IPO).
According to Reuters, chief executive RJ Scaringe said that the Rivian division has nine self-driving prototypes ready for testing with autonomous sensors on its electric R1.
The electric vehicle division is due to go into production sometime in 2020, the first vehicle production in a coming year that will see the division triple its number of employees from 1,000 to about 3,000, according to Reuters.
This news comes shortly after the Pittsburgh-based maker of trash trucks, United Parcel Service, disclosed in its 10-K filing that it has signed a deal with Rivian in which its U.S. unit will purchase up to 70 vehicles.
“United Parcel Service Co. (UPS) (NYSE: UPS) will purchase, at a cost that does not exceed the negotiated purchase price, one, two, and three HSI vehicles, to be deployed in 10 of our U.S. North American integrated sorting facilities, as all vehicles are assigned a [driver application vehicle] to reduce the number of vehicles needed in the fleet and improve safety and maintenance,” UPS said in the filing.
Fox News.com Reporter and FOX News Contributor Chad Pergram covers national politics and the White House. Previously, Pergram served as Washington bureau chief for Tribune-Review, where he covered government and politics. Follow him on Twitter: @ChadPergram.