Amazon invested in Rivian in 2019, which Rivian CEO RJ Scaringe describes as a major boost to the company's odds of success.
“Probably 2019. 2019, Amazon invested in the company. So that would be a big spike in probability.”
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RJ Scaringe
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Amazon invested in a $700 million funding round in Rivian.
“But the round they invested was a $700 million round.”
Amazon is Rivian's largest shareholder, according to Scaringe.
“Today, they're our largest shareholder.”
Rivian began sketching its electric delivery van with Amazon in early 2019 and signed a supply deal by the end of 2019.
“we were sketching the ideas for the vehicle. And by end of 2019, we'd signed a deal to supply commercial vans.”
Rivian builds roughly 10,000 commercial vans a year, according to Scaringe.
“It's about 10,000 or so a year. It's going to be growing.”
Rivian launched the R1T truck, R1S SUV and a commercial van at the same time, which Scaringe says made the ramp extremely hard.
“we launched three different products at the same time.”
During the 2022 supply chain crisis, suppliers asked Rivian to pay about 20% extra because it was a new customer last in line.
“they said, look, you're going to have to pay us an extra 20%.”
Rivian reached positive gross margin in the fourth quarter of 2024 and first quarter of 2025, according to Scaringe.
“So Q4 of 24, Q1 of 25, positive gross margin.”
With its Gen 2 vehicles, Rivian reduced the number of compute platforms from 17 to three zone controllers.
“And then with Gen 2, we went from 17 down to 3.”
The Rivian R2, a smaller five-passenger SUV, has a starting price of $45,000.
“it's a starting price of $45,000.”
Rivian plans to build up to 175,000 R2s at its plant in Normal, Illinois.
“there we'll be building up to 175,000 R2s.”
Rivian's Illinois plant will be capable of 215,000 units a year, with a Georgia plant adding another 400,000 units of capacity across two phases.
“The plant will be capable of 215,000 units with just our normal facility, normal Illinois facility.”
Rivian's new quad-motor R1T accelerates from zero to 60 mph in just under 2.5 seconds, according to Scaringe.
“the R1T, the truck, will do zero to 60 in just under two and a half seconds.”
Scaringe says a lidar sensor cost about $75,000 fifteen years ago and about $20,000 six or seven years ago, and now costs about $200.
“six, seven years ago, a LiDAR was $20,000. 15 years ago, a LiDAR was $75,000.”
Scaringe says a good imaging radar costs roughly $100 to $125.
“You can buy a great imaging radar for $100, $125.”
Rivian's continuous-winding motor on the R2's Maximus drive unit cuts the number of welds by about 95% compared with hairpin-winding motors.
“it takes the number of welds in the motor down by something like 95%.”
Rivian named the R2 drive unit Maximus after Scaringe's middle son.
“On R2, on the drive unit that we called Maximus, which is my middle son's name”
Rivian struck a $5.8 billion deal with Volkswagen to provide a zonal electronic architecture and software platform.
“We did a $5.8 billion deal with Volkswagen where we're providing them.”
Rivian's internal code name for its Gen 2 vehicles is Peregrine.
“So the code name for Gen 2 is Peregrine.”
The code name for the first production-representative R1 prototypes was Avocado.
“the code name for that vehicle is Avocado.”
Rivian's revenue was around $5 billion in the previous year, according to Scaringe.
“last year I think we were just around $5 billion.”
Scaringe says revenue over a vehicle's life is generally two to two and a half times its initial sale price, over about 15 years.
“the revenue over the life of the vehicle is generally around two to two and a half X the initial sale price.”
Scaringe says that apart from Rivian and Tesla, automakers sell through distributors and dealers rather than directly to consumers.
“with the exception of us and Tesla, every manufacturer today sells through distributors and distributors then on to dealers”
The name Rivian combines the first letters of 'river' and the last letters of 'Indian', from the Indian River where RJ Scaringe grew up.
“So Rivian is a play in words. I grew up on the Indian River.”